By Michael Wursthorn and Georgi Kantchev 

The Dow Jones Industrial Average fell more than 150 points, nearly putting the blue-chip index in correction territory, as a bevy of anxieties, from trade tensions to the U.K.'s departure from the European Union, exacerbated the stock market's latest rout.

The stock market continued its hang-up on trade after the U.S.'s lead negotiator with Beijing pledged over the weekend to walk a hard line during the 90-day truce, threatening further tariffs and sanctions if a deal isn't reached.

Losses accelerated, with the Dow falling more than 500 points at one point, as oil prices tumbled and British Prime Minister Theresa May delayed a vote on her government's Brexit bill, further clouding investors' global outlook, analysts said.

The blue-chip index later pared those losses to pull the Dow out of correction territory, which is usually defined as a pullback of 10% or more from a recent high.

"This is a tough market," said Steve Chiavarone, who runs Federated Investments' global allocation fund. He added that global tensions are leading investors to price "in a recession where you see some stocks down 30% or 40%."

The Dow industrials slid 168 points, or 0.7%, to 24221 in recent trading. A close below 24145.55 would put all three major U.S. stock indexes simultaneously in correction territory for the first time since March 2016.

The S&P 500 declined 0.5%, while the Nasdaq Composite added 0.1%, as technology companies notched less severe losses.

Over the weekend, U.S. Trade Representative Robert Lighthizer said the U.S. would hold fast to its 90-day deadline for the conclusion of a lasting trade agreement, and Washington would impose punishing tariffs on Chinese imports if none is reached.

Adding to trade tensions was the arrest of a senior executive at Huawei Technologies who was taken into custody in Canada. China on Sunday summoned the U.S. ambassador to China, Terry Branstad, to demand the U.S. retract its arrest warrant.

"It's clear that there will be ongoing trade tensions, and that matters for investors," said Ann-Katrin Petersen, investment strategist at Allianz Global investors. "This is a superpower rivalry that will continue."

World trade growth is already slowing and leading indicators are also trending downward, economists at Citigroup wrote in a report to clients Monday. Growth in global merchandise trade volumes in September was at its lowest level since early 2018, the bank said. Expectations for slower growth hurt shares of financial stocks, pulling bank stocks in the S&P 500 down 2.9% in recent trading.

Falling oil prices contributed to Monday's losses, with crude oil tumbling more than 1.5% to extend the commodity's recent slide. That pulled energy stocks in the S&P 500 down 2.4%.

The losses follow a bruising week that sapped more than 4% from each of the major indexes. Both the Dow industrials and the S&P 500 are in the red for 2018, putting both indexes on pace for their worst year since 2015.

Overseas, Mrs. May postponed the vote on her government's Brexit bill, throwing the country's plans for the U.K.'s exit from the EU into disarray.

The Stoxx Europe 600 deepened its losses after the news, with the index falling 1.9%, hitting its lowest closing value since November 2016.

The U.K. parliament was widely expected to reject Mrs. May's deal, throwing plans for Brexit on March 29 into turmoil.

Also Monday, the European Court of Justice, the EU's highest court, ruled that the U.K. government can unilaterally reverse its decision to leave the bloc without the approval of its EU counterparts. The ruling is a boost to anti-Brexit campaigners but further complicates Mrs. May's struggle to win parliamentary backing for her deal.

The U.K. currency fell 1.4% against the U.S. dollar to $1.4337.

Asian markets fell across the board, with Japan's Nikkei shedding 2.1%.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com

(END) Dow Jones Newswires

December 10, 2018 14:03 ET (19:03 GMT)

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