A smashed up Land Rover could be seen behind a police cordon at the scene in the High Street and police said four arrests have been made.
Two teenagers, aged 17, and an 18-year-old man were in custody tonight having been detained on suspicion of violent disorder after the incident that broke out on Wednesday afternoon.
Another man, 21, was also arrested for the same offence but he was taken to hospital after receiving injuries to his leg.
West Midlands Police have appealed for eyewitnesses or anyone with information to get in touch.
A spokesman for the force said: "We were called to reports of disorder on the High Street in Dudley at around 3.20pm this afternoon.
"We believe several cars and a number of people with weapons were involved.
"Two teenagers, aged 17 and an 18-year-old man, have been arrested on suspicion of violent disorder and have been taken into custody.
"A man aged 21, has also been arrested on suspicion of violent disorder, but has been taken to hospital to have injuries to his leg assessed.
"An investigation is under way and anyone who saw anything, or has any information, is asked to contact us."
Police initially sent armed officers to the scene while a cordon was placed around High Street, as part of the response.
A dark-coloured Land Rover was left inside the police cordon with damage to its front end. It was towed away around 7pm before the cordon was lifted.
The High Street is mainly lined with businesses, and workers at different shops spoke of their shock at the incident.
Amir Mostafabi, who works at Caspian Pizza, said he saw several people arrested a nearby takeaway.
He said: "I saw some people going out in handcuffs to the police car."
He added: "This does not usually happen around here. At first I thought it was a car crash."
Xiled Azeez, who runs All Day Foods, said: "It has left me a bit shocked. We usually see this type of thing in a movie."
Anyone with information is asked to contact police, quoting log number 2775 of January 20.
Alternatively, contact Crimestoppers anonymously on 0800 555111 or at crimestoppers-uk.org