The Dow Jones Industrial Average was down more than 300 points, or 1.29%, while the S&P 500 and Nasdaq Composite were both lower by 1.32%.
A report out Monday from China's National Bureau of Statistics showed the Chinese economy grew at a 6.4% year-over-year clip in the fourth quarter, its weakest since Q1 2009. Investor worries were compounded by word that South Korean exports, seen as the world's "economic canary in the coal mine" cratered 14.6% during the first 20 days of the year. Last year, they rose 1%.
Also on Monday, the IMF cut its global growth forecast because of the trade war between the US and China. In its report, the IMF said it now sees global growth of 3.5% this year and 3.6% next, down from its previous forecast of 3.7% and 3.8%.
Looking at things on a company-specific level, Arconic shares cratered as much as 25% after the company's board of directors said it would no longer pursue a sale. Shares recouped a portion of their earlier losses, but were still down more than 16%.
Meanwhile, eBay surged more than 6% after the billionaire hedge-fund manager Paul Singer's Elliot Management announced a $1.4 billion stake and laid out its five-step plan for creating value. Elliott says shares could be worth $55-$63 apiece, representing an upside of more than 75% to 100% from Tuesday's price.
On the commodities front, West Texas Intermediate crude oil plunged more than 3% to below $52 a barrel at session lows.
The US 10-year yield was down 3.7 basis points at 2.75%.