U.S. stocks fall on global growth forecast cut

U.S. stocks traded sharply lower in the morning session on Monday, as the Organisation for Economic Cooperation and Development (OECD) shaved 2015 global growth forecast to 2.9 percent.

At midday, the Dow Jones Industrial Average lost 219.70 points, or 1.23 percent, to 17,690.63. The S&P 500 was down 26.73 points, or 1.27 percent, to 2,072.47. The Nasdaq Composite Index plunged 70.31 points, or 1.37 percent, to 5,076.81.

A further sharp downturn in emerging market economies and world trade has weakened global growth to around 2.9 percent this year -- down from 3 percent forecast in September -- and is a source of uncertainty for near-term prospects, the OECD said on Monday.

In its latest twice-yearly Economic Outlook, the OECD projected a gradual strengthening of global growth in 2016 and 2017 to an annual 3.3 percent and 3.6 percent respectively.

OECD Secretary-General Angel Gurria said: "The slowdown in global trade and the continuing weakness in investment are deeply concerning. Robust trade and investment and stronger global growth should go hand in hand."

With no major economic data due out Monday, investors were still assessing the possibility of a December rate hike after Friday's much-better-than-expected jobs report.

U.S. total nonfarm payroll employment increased by 271,000 in October, the largest gain since December 2014. The unemployment rate fell to 5.0 percent, the lowest since April 2008.

Many analysts believe that the U.S. Federal Reserve will hike interest rates next month, as Fed Chair Janet Yellen reiterated last week that the central bank may pull the trigger at its December policy meeting if the U.S. economy is "performing well." Endit