WALL Street stocks fell sharply along with bonds yesterday, extending last week's retreat from record levels as economic concerns prompted investors to lock in profits from this year's surprisingly powerful rally.

The Dow Jones industrial average fell 44.79 points to close at 5,458.53. The main barometer of blue chip companies has now shed about 140 points in four sessions after rising nearly 500 points in the new year and cracking the 5,600-mark for the first time just a week ago.

Bond prices were lower most of the day before plunging at mid-afternoon, dragging stocks lower, as Federal Reserve Chairman Alan Greenspan delivered his report to Congress.

Declines today outnumbered advances by nearly 4 to 1 on the New York Stock Exchange, with 537 up, 1,958 down and 610 unchanged volume totaled 395.02 million shares, against 432.38 million in the previous session. The NYSE's composite index fell 3.92 to 342.27.