Dow drops nearly 550 points, sending its two-day loss total to nearly 1,400 points.
U.S. markets suffered deeper losses Thursday, following on a global rout as investors lost their nerve over rising U.S. interest rates and fresh worries about an economic slowdown.
Concerns about U.S.-China ties weighed heavily, too. U.S. markets rebounded briefly after it was announced that President Donald Trump would meet with Chinese leader Xi Jinping at next month's G-20 summit in Buenos Aires to discuss the intensifying trade issues.
The Dow Jones industrial average ended the day down 2.1 percent, or 546 points, to 25, 052. It pushed the two-day loss to nearly 1, 400 points.
Ivan Feinseth, an analyst with Tigress Financial, was optimistic about the strength of the economy and called the sell-off an "incredible buying opportunity." "Any kind of softening of the tensions with China would be a huge catalyst for the market, " Feinseth said.
After the Dow dropped 832 points Wednesday, one of the worst sell-offs since February, Trump strongly criticized the Fed for tightening rates, again signaling that he wanted interest rates to remain low.
"The Fed is making a mistake. They're so tight. I think the Fed has gone crazy, " he told reporters while traveling in Pennsylvania on Wednesday. "It's a correction that we've been waiting for, for a long time. But I really disagree with what the Fed is doing, OK?"
The real litmus test will be how the markets react to third-quarter earnings reports over the next few weeks, and how the retail market delivers for the holiday season, said Howard Silverblatt, a senior analyst with S&P Dow Jones Indices.
"Volatility and concern is high, " Silverblatt said. "Hopefully earnings will take us away, and we can focus on the fundamentals."