NEW YORK, June 7 (Xinhua) -- Wall Street plunged Thursday on inflationary pressures as bond yields rose.

    Worries on inflation was stirred as the U.S. Labor Department said Wednesday unit labor costs rose at higher-than-expected 1.8 percent in the first quarter while the European Central Bank lifted its key interest rate 4 percent.

    The yield on the benchmark 10-year Treasury note jumped to 5.13 percent, hitting its highest points since mid-July.

    The Dow Jones Industrial Average was down 198.94 points, or 1.48 percent, to 13,266.73. The Nasdaq composite lost 45.80 points to 2,541.35 while the Standard & Poor's 500 index declined 26.66 points to 1,490.72.