"The growth picture right now is not all that encouraging," said John Caruso, senior market strategist at RJO Futures. "I think it's the data, that's the lion share of it."
"The ISM number this morning was rather alarming," he said. "That certainly raises some doubts that we are seeing expansions that economists are forecasting."
Sharp declines in oil weighed heavily on stocks as U.S. and Chinese economic data indicated slowing demand.