Selling on both sides of the Atlantic then gathered pace and at one point the two-day loss on the Dow Jones had reached 1,100 points.
Global equity markets have tumbled on the back of heightened fears about global economic growth and rising interest rates.
Looking at individual stocks in Europe, Britain's WH Smith plummeted to the bottom of the index after announcing new plans to restructure its high street stores. Shares of the London-listed stock were down more than 12 percent on the news.
Britain's Hays was also trading sharply lower, after the recruitment agency warned currency headwinds could hit its fiscal 2019 year. Shares of the company were off by around 9 percent.
Meanwhile, Dialog Semiconductor rose to the top of the index Thursday afternoon. The company's shares soared after it announced a new $600 million deal with Apple.
The U.S. president also commented on the plunge in markets, calling it a "correction that we've been waiting for a long time."
Are we entering the beginning of a bear market for bonds?
Not a Scientific Survey. Results may not total 100% due to rounding.
Back in Europe, Brexit is largely in focus after the European Union's chief Brexit negotiator, Michel Barnier, struck an optimistic tone on a deal for the U.K.'s eventual withdrawal from the bloc, saying an agreement was achievable as soon as next week.
Barnier stressed, however, that the U.K. remaining in the customs union would be the best possible solution to avoiding a hard border between the Irish mainland and Northern Ireland.
In corporate news, German carmaker BMW announced it is investing $4.2 billion in a joint venture with Chinese firm Brilliance Auto — giving it a majority stake.
BMW is the first major carmaker to take control of a joint venture within China.