Fears escalated Monday that the global economy could struggle more than expected this year — a prospect that contributed to a plunge in global financial markets.
The anxiety was heightened by reports that manufacturers extended their slumps last month in the United States and China, the world's two largest economies.
The Dow Jones industrial average clawed back from a steep early decline but still ended down 1.6 percent, its biggest loss in two weeks. Markets in Asia and Europe were down more.
The trouble started in China, where the 10th straight month of weak manufacturing figures in the world's second-largest economy sent the Shanghai Composite Index plunging 6.9...