By Michael Wursthorn and Avantika Chilkoti 

The Dow Jones Industrial Average fell more than 300 points Tuesday, the blue-chip index's first decline in five trading sessions, as concerns over trade and global growth resurfaced.

Stocks opened the holiday-shortened week on shaky footing after the International Monetary Fund reduced its forecast for global economic growth in 2019, forcing investors to again confront the possibility that some major economies around the world, including China and Europe, are weakening faster than expected.

The report, which coincided with new data showing the Chinese economy grew at the slowest annual pace since 1990, sparked the harshest selloff for the Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite since Jan. 3 and halted a four-day run of gains for the major indexes.

Losses accelerated in the afternoon after the Financial Times said the Trump administration turned down an offer to hold preparatory trade talks with China. Administration officials later denied the report, helping stocks pare their losses before the closing bell.

Mixed earnings results from Stanley Black & Decker and Johnson & Johnson added to Tuesday's downbeat tone, further heightening investors' growth fears.

"The U.S. isn't insulated from what goes on around the world," said Marc Pfeffer, a chief investment strategist and portfolio manager at CLS Investments. "We're in a positive, but slower, meandering path of growth, " with U.S-China trade tensions, the continuing government shutdown and the overall impact on corporate profits all acting as wild cards for investors that could drastically alter the investment landscape, he added.

The Dow industrials fell 301.87 points, or 1.2%, to 24404.48, while the S&P 500 shed 37.81 points, or 1.4%, to 2632.90. The technology-heavy Nasdaq Composite slid 136.87 points, or 1.9%, to 7020.36.

The losses interrupted the stock market's rebound from a punishing year-end selloff and could signal another bout of volatility is imminent. The broad S&P 500 has risen 5% this year following its worst December since 1931, as investors took earlier data portraying a healthy labor market and signals that the Federal Reserve will be flexible with monetary policy as cues for optimism.

But anything suggesting global growth is weakening faster than expected has been spooking investors, especially as they continue to worry about the ramifications of the U.S.'s continuing trade spat with China, the Fed's easing of monetary policy and a government shutdown that started more than a month ago.

Investors mostly remain skeptical, according to some measures of sentiment. Bank of America Merrill Lynch, for example, said in a recent report that 25-day put/call ratios remain elevated, suggesting investors aren't fully convinced that the worst of the recent selloff is over.

Major Wall Street banks added that they expect the bounceback to fizzle and stocks to touch new lows. Wells Fargo, for one, suggested the indexes have rallied too quickly, adding it usually takes an average of 63 trading days for the S&P 500 to hit a new high after falling at least 20%.

Recent housing data further muddied the economic outlook for the U.S. New data Tuesday showed that existing-home sales fell in December to their weakest level in more than three years.

Industrial companies bore the brunt of Tuesday's selloff, with shares of Stanley Black & Decker falling $21.19, or 15%, to $115.69 after the tool maker warned investors that profit this year would be under pressure from higher costs, currency headwinds and trade tariffs.

"As we enter 2019, the external challenges don't magically disappear," said James Loree, Stanley Black & Decker's chief executive. "There are signs that the global economic growth is slowing and that the U.S. economy may soon be coming to the end of one of the most enduring recoveries in U.S. history."

Also weighing on major indexes were shares of Arconic. The shares fell 3.25, or 16%, to 17.09 after the company said it won't pursue a sale of itself. The Wall Street Journal previously reported Arconic was in talks to sell itself to private-equity firm Apollo Global Management, but Chairman John Plant said Tuesday that it didn't receive a proposal that would be in the interest of shareholders.

Elsewhere, the Stoxx Europe 600 fell 0.4%, its second consecutive decline, while stocks in Asia mostly fell. Japan's Nikkei Stock Average shed 0.5%, while the Shanghai Composite and Hong Kong's Hang Seng fell 1.2% and 0.7%, respectively.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com and Avantika Chilkoti at Avantika.Chilkoti@wsj.com

(END) Dow Jones Newswires

January 22, 2019 17:27 ET (22:27 GMT)