New York, Dec 18 (IANS): US stocks closed lower as soft economic data renewed investors' worries over a possible economic slowdown.

The Dow Jones Industrial Average fell 507.53 points, or 2.11 percent, to 23,592.98. The S&P 500 decreased 54.01 points, or 2.08 percent, to 2,545.94. The Nasdaq Composite Index was down 156.93 points, or 2.27 percent, to 6,753.73, Xinhua news agency reported on Monday.

The Dow is now more than 11 percent lower than its 52-week high while the S&P 500 is down 12 percent compared its record high. The CBOE Volatility Index, which is widely considered the best fear gauge in equities, hit a high of 23.79.

New York manufacturers reported on Monday that business activity is growing at a slower pace in recent months. The Empire State Manufacturing Survey's headline general business conditions index, aggregated by the Federal Reserve Bank of New York, fell 12.4 points to 10.9 in November, weaker than analysts' expectations of the 20.6.

Homebuilder sentiment drops in December to the lowest point in more than three years as potential buyers delayed purchasing new homes, giving rise to concerns over affordability.

Sentiment retreated four points in December to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.