The Dow Jones Industrial Average plunged 877 points, or 4 percent, in the opening minutes of trading while the S&P 500 and Nasdaq Composite fell 3.7 percent and 3.08 percent, respectively.
Monday’s advance comes after President Trump on Sunday evening announced the extension of social distancing guidelines through at least April 30.
Investors are beating down the bear as optimism returns to equities.
The U.S. economy is in a recession expected to last through September, according to a revised forecast released Monday by UCLA that reflects rapid changes brought on by the coronavirus.
U.S. equity markets were halted shortly after the opening bell when the S&P fell by 7 percent.
Stocks, Treasury yields and oil are clawing back some of the plunge they took a day before, when the S&P 500 had its worst drop in more than a decade.
Stocks fell sharply on Wall Street Tuesday after an emergency interest-rate cut by the Federal Reserve failed to reassure markets racked by worries that a fast-spreading virus outbreak could lead to a recession.
The Dow Jones Industrial Average surged more than 1,200 points, or 5%, on hopes that central banks will take action to shelter the global economy from the effects of the coronavirus outbreak.
U.S. stocks fell sharply in early trading Friday and were on track for their worst week since October 2008 as the spreading coronavirus threatens to derail the global economy.
Critics of the high-end exercise equipment maker say the ad is sexist and classist.