Dow drops nearly 500 points, but market has bounced off its lows as Amazon goes positive

Stocks fell sharply on Thursday as continuing fears over U.S.-China trade relations and concern over a possible global economic slowdown kept investors on edge.

At its low of the day, the Dow Jones Industrial Average dropped nearly 800 points, bringing its two-day losses to more than 1,500 points. But the market bounced off its lows midway through the trading day as shares of Amazon and Alphabet fought back into the green. The Dow was last down about 450 points.

The S&P 500 fell 1.4 percent, led by a decline in bank shares like J.P. Morgan Chase, while the Nasdaq Composite also dropped 1.4 percent. The S&P 500 fell back into correction territory at one point, down 10 percent from its 52-week high. The Nasdaq Composite was down 0.5 percent.

“There’s concern that the trade deal is not as good as [President Donald] Trump said it was,” said Mark Esposito, CEO of Esposito Securities. “Recession fears are also settling into the market.”