The Dow fell 221 points, or 0.9%, on Wednesday on mounting concerns about the impact of the US-China trade war. The index had been down by as much as 410 points and even briefly dropped below the 25,000 level before recovering.
The Dow still closed at its weakest point since mid-February. The S&P 500 declined 0.7%, while the Nasdaq lost 0.8%.
Nervous investors continue to flock to the bond market, sending the 10-year Treasury yield to levels unseen since late 2017.
There's a growing realization that the US-China trade relationship has been badly damaged and is deteriorating," said Kristina Hooper, chief global market strategist at Invesco. "Finally, stocks are pricing that in."
Johnson & Johnson (JNJ) declined 4%, leading the way lower on the Dow, as the company faces a trial in Oklahoma over its role in the opioid crisis.