The hadith as stated could possibly be interpreted in a manner that fits our knowledge of today. However it might have an issue if we understood that the sun was dipped in Allah's heat after sunset.
Ibn Kathir when commenting on 18:86:
Until, when he reached the setting of the sun, he found it [as if] setting in a spring of dark mud, and he found near it a people. ...
MUHSIN KHAN (*):
Until, when he reached the setting place of the sun, he found it setting in a spring of black muddy (or hot) water. ...
(*)Depending on the two accepted reading the second translation added in Muhsin Khan's translation is closer to the meaning of this hadith.
Quoted the hadith and referred to it as a quote from ibn Jarir at-Tabari's tafsir and gave a first qualification saying:
In the following I'm translating from Arabic language, as these translations are of my own take them carefully!
وقال ابن جرير : حدثنا محمد بن المثنى ، حدثنا يزيد بن هارون ، أخبرنا العوام ، حدثني مولى لعبد الله بن عمرو ، عن عبد الله قال : نظر رسول الله صلى الله عليه وسلم إلى الشمس حين غابت ، فقال : " في نار الله الحامية [ في نار الله الحامية ] ، لولا ما يزعها من أمر الله ، لأحرقت ما على الأرض " .
Ibn jarur said: We were informed by Muhammad ibn al-Muthana, from Yazid ibn Harun, al-'Awwam told us, from a Mawla of 'Abudllah ibn 'Amr from 'Abdullah who said: The messenger of Allah Allah's prayers and blessings be upon him looked at the sun when it set and said: “ in the burning fire of Allah [in the burning fire of Allah], and if it were not for Allah’s command to control it, it would have burned all that is on the earth.”
قلت : ورواه الإمام أحمد ، عن يزيد بن هارون . وفي صحة رفع هذا الحديث نظر ، ولعله من كلام عبد الله بن عمرو ، من زاملتيه اللتين وجدهما يوم اليرموك ، والله أعلم .
I said: It was narrated by the imam Ahmad from Yazeed ibn Harun (too). But it is doubtful whether this hadith is marfo'. It rather could be from the speech of 'Abdullah ibn 'Amr from his two findings of the day of the Yarmuk battle. And Allah knows best.
A further issue in the hadith here is that the Mawla of 'Abdullah ibn 'Amr was not named, which makes him an unknown hadith reporter or narrator.
I found somewhere that Sheikh Sho'ayb al-Arnaout considering it da'if -see for example here-:
إسناده ضعيف لجهالة مولى عبد الله بن عمرو، وباقي رجاله ثقات رجال الشيخين. العوام: هو ابن حوشب.
Its chain of transmission is weak due to the ignorance of the mawla of the 'Abdullah bin 'Amr, and the rest of his men are trustworthy, the men of the two sheikhs. As for Al-'Awwam: it is Ibn Hawshab.