A steep slide followed by a strong recovery whipsawed investors on Thursday, as concerns about the global economy, trade tensions and interest rates kept markets on edge.

Stocks fell around the world after the arrest of a top Chinese technology executive intensified concerns that China and the United States, the world’s two largest economies, could be entering a risky new chapter in their trade dispute. But Wall Street recovered most of those losses in an afternoon rally predicated on the prospect that the Federal Reserve may slow down on interest rate increases next year.

At one point in the day, the S&P 500 was down as much as 2.9 percent, mirroring steep declines in Asia and Europe. A recovery late in the trading day, however, left the index down only about 0.2 percent at the closing bell.

The dueling messages continued on Friday morning in Asia, where markets were mixed and futures that predict Wall Street’s opening showed a modest drop.