Dow down more than 270 points on global gloom

The prospects of weakening global growth weighed on the stock market Tuesday, sending the Dow Jones industrial average down 272 points at the close.

At the close, the Dow dropped 272.52, about 1.60 percent, at 16,719.39. The Standard & Poor's 500 index was down 29.72 points, or 1.51 percent, at 1,935.10. The Nasdaq composite, lost 69.60 points, or 1.56 percent, to 4,385.20.

U.S. growth may be strengthening, but the outlook elsewhere is far less encouraging. On Tuesday the International Monetary Fund trimmed its forecast for global economic growth. A surprisingly weak report on industrial production in Germany, Europe's biggest economy, added to the concerns.

Industrial companies, whose fortunes are closely tied those of the global economy, led the sell-off. Government bonds rallied as investors snapped up safe assets, pushing the yield on the benchmark 10-year Treasury note close to its lowest level of the year.

After a weak September, the slump in stocks is showing no signs of abating in October. The Standard & Poor's index has now dropped almost 4 percent since closing at a record Sept. 18.

"Investors have become a bit more cautious about earnings and about the pace of global growth," said Kate Warne, a principal at Edward Jones, an investment firm. "That reassessment is leading to a bit more caution on stocks."

General Motors was among the biggest decliners in the S&P 500 after analysts at Morgan Stanley cut their price target for the stock. The analysts predict that the automaker's earnings will suffer as it invests heavily in production. GM's stock dropped $1.98, or 5.9 percent, to $31.77.

SodaStream was another big loser. The Israel-based company said it isn't winning over enough new customers in the United States, and reported preliminary sales results that fell short of Wall Street's expectations. The stock tumbled $6.05, or 21.9 percent, to $21.52.

Stocks started the day lower after a report showed that German industrial output fell 4 percent in August, far more than expected. The slump follows other disappointing economic reports and suggests Europe's economy will not recover as strongly as hoped in the third quarter.

The prospect of slowing growth in other parts of the world weighing on corporate profits was behind the sell-off Tuesday, said Jack Ablin, chief investment officer at BMO Private Bank. Companies will soon start reporting earnings for the third quarter and investors will be watching out for their forecasts for the rest of the year.

Benchmark U.S. crude fell $1.49 to close at $88.85 a barrel on the New York Mercantile Exchange, its lowest level since April of 2013. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 68 cents to close at $92.11 on the ICE Futures exchange in London.

Sliding oil prices are also hitting energy stocks, and the sector extended its losses on Tuesday. Energy companies in the S&P 500 have dropped 9.4 percent in the past month.