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New York - US stocks dropped Tuesday following weak German economic data and a downgrade to the 2014 global growth forecast by the International Monetary Fund (IMF).
About 35 minutes into trade, the Dow Jones Industrial Average stood at 16 877.85, down 114.06 points.
The broad-based S&P 500 fell 0.60% to 1 953.03, while the tech-rich Nasdaq Composite Index dropped 0.69% to 4 423.89.
The German economy ministry reported that industrial output in Europe's largest economy sank by 4.0% in August, a decline that helped push equity markets sharply lower in Britain, France and Germany.
The IMF trimmed its 2014 global growth forecast to 3.3%, down 0.1 percentage point from July and 0.4 point less than it envisaged in April.
The international organisation warned of stagnation in advanced economies and highlighted risks from the Russia-Ukraine crisis and strife in the Middle East, and the wider economic threat if the Ebola outbreak in West Africa is not contained.
READ: IMF warns on Ebola threat for Africa growth
Amazon fell 0.8% as European Union officials said they were investigating whether the online retailer unfairly benefited from sweetheart tax deals in Luxembourg.
Dow member McDonald's fell 0.8% as its Japanese division projected an extraordinary loss for 2014 following a scandal involving a Chinese meat supplier. McDonald's Japan division curtailed imports of some meat from China after the supplier, Shanghai Husi Food, was shut following allegations that it used out-of-date meat.
Agco, which manufactures agricultural equipment, dropped 7.2% after slashing its forecast due to disappointing sales. Deere, another maker of farm equipment, lost 1.9%.
SodaStream, which manufacturers home appliances for making soda, sank 20.5% as it projected third-quarter revenues of just $125m, well below the $154.1m expected by analysts.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.39% from 2.42% Monday, while the 30-year declined to 3.10% from 3.13% Bond prices and yields move inversely.
