A measure of small-company stocks fell into a bear market, a decline of 20 percent below their recent peak.
A profit warning from British retailer ASOS raised concerns about weakening consumer strength, despite robust United States retail sales data on Friday.
Meanwhile, oil dropped below $50 a barrel, its lowest price since October 2017.
World stock markets inched higher on Tuesday as investors looked ahead to whether the U.S. Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy.
Almost 2,000 stocks on the New York Stock Exchange and Nasdaq hit 52-week lows, the most in almost three years.
On Tuesday, the Energy Information Administration said US shale oil production will keep climbing in January, and the Wall Street Journal reported that oil production in Russian Federation reached a record high in December.
The broad-based S&P 500 ended up a hair at 2,546.16, while the tech-rich Nasdaq Composite Index won 0.5 per cent to 6,783.91. Shares of Amazon.com Inc dropped 4.5 percent, creating the biggest drag on the S&P 500 and the Nasdaq.
Stocks Plunge Amid Fears Trade Row With China to Amplify
Markets are bracing themselves for another tough day ahead, with bad news leading in and nervousness about a Federal Reserve rate-setting meeting ahead. While a rate hike is widely expected, historically the central bank has rarely raised borrowing costs during such market turmoil.
"We're all holding our breath for the Fed", Detrick said.
The Dow Jones Industrial Average was down 400 points, or 1.68%, and on track to close at its lowest level since the beginning of April. Several other companies that have recently suffered big losses also said they will buy back more stock, including health care products giant Johnson & Johnson and insurer Allstate. The yield on the 10-year Treasury dipped to 2.82 percent from 2.85 percent late Monday.
Shares of Goldman Sachs Group Inc dropped 2.8 percent to a two-year low after Malaysia filed criminal charges against the bank in connection with an investigation into suspected corruption and money laundering involving the sovereign wealth fund 1MDB. The VIX Volatility Index was higher at 25.75 for a gain of 1.23 points or 5.02%.
Oracle rose 4.2 percent after the business software maker reported better earnings that analysts were expecting. The S&P 500 posted no new 52-week highs and 87 new lows; the Nasdaq Composite recorded eight new highs and 523 new lows.
The Canadian dollar was trading at 74.36 cents U.S., up from Tuesday's average value of 74.33 cents US.
Penny Marshall, "Laverne & Shirley" star, dead at 75
Gladiator actor Russell Crowe said: " Penny told me the story of Jim Braddock, which became the movie Cinderella Man ". Director, producer and actress who had the humour, wit and fortitude to stand equally with the boys in Hollywood.
May says postponed Brexit vote to be held in January
While May was in Brussels last week, Blair was pushing for a so-called people's vote . She said: "I am fighting for a good deal for Britain".
Don't 'Slink' Away, 'Speak The Truth' About 'Lying' Donald Trump
The joint panel is also expected to interview Lynch behind closed doors on Wednesday. There is a truth and they're not telling it.