Investors concerned about inflation after a surprise jump in labour costs bid stocks sharply lower on Wall Street today, with unfounded rumours of a terror threat compounding the selling.

US stocks posted their first noteworthy losses of 206 today as analyst downgrades of two Dow Jones industrials and rising oil prices prompted investors to take profits just one trading session after the major indexes reached new highs.

Wall Street made an auspicious start to December today with stocks soaring as investors welcomed inflation-friendly economic data and hoped the November rally would continue through year-end.