NEW YORK -- The New York Stock Exchange said on Thursday it instituted downside trading curbs as U.S. stocks fell sharply in early trading.

The U.S. market's fall followed a sharp sell-off in equities on Tuesday. On Thursday, renewed inflation worries and a rise in the yen stirred concern that investors were being forced to unwind carry trades.

The New York Stock Exchange Composite Index, which is used to determine when to begin trading curbs, was down 159.75 points, or 1.8 percent, at 8964.79.

The trading curbs require that all program buying of S&P 500 stocks must be on an up-tick.

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