The Dow sank 1%, or nearly 500 points, retreating from morning gains. The S&P 500 suffered a 1.4% loss. The Nasdaq composite was the hardest hit of the major indexes with a 1.9% drop. Small-cap stocks weren't spared the sell-off, with the Russell 2000 index diving 1.6%.

China's government bond yields saw a broad decline on Saturday.

Stock markets fell as the simmering trade war between the United States and China reignited, with the Nasdaq down 3.6 percent and the S&P 500 down 2.7 percent.