WALL Street technology shares led a broad decline following an inflation report that failed to calm fears the Federal Reserve is set to raise interest rates next week.

The Dow Jones industrial average recovered much of the day's decline over the last hour. The broad market finished with much steeper losses, however. The technology laden Nasdaq market suffered the worst damage as leading computer industry names continued their recent slide.

Bonds started the day higher, but turned lower after a report on consumer prices revealed a bigger than expected increase during February. Investors had been hoping for a tamer reading that might keep the Fed from moving to contain inflationary pressures by raising rates.

Many analysts are expecting Federal Reserve officials to slow the pace of business by raising the central bank's key lending rates at next week's meeting. Chairman, Mr Alan Greenspan has warned the central bank would move preemptively to avert any potential acceleration in inflation.