The International Monetary Fund's gloomier outlook for 2012 and 2013 global growth came a day after the World Bank slashed its growth estimates for developing countries in East Asia and the Pacific.

The Dow Jones Industrial Average was down 109.20 points, or 0.80 percent, at 13,474.45 in closing trade.

The S&P 500 slid 14.35 (0.99 percent) to 1,441.53 and the tech-rich Nasdaq shed 47.33 (1.52 percent) at 3,065.02.