The Dow Jones industrial average closed 344.89 points lower at 23,857.71 and re-entered correction territory, with Microsoft as the worst-performing stock in the index.
The bulls would not go down without a fight and the market began to recover around midday. It dropped by more than 400 points Thursday and Friday after President Donald Trump signed an order to impose a tariff on Chinese goods. In fact, it is poised to post a roughly 200-point gain after a few days of frenzied trading. The Dow Jones industrial average gained 669.40 points, or 2.8 percent, to 24,202.60. The Standard & Poor's 500 index advanced 2.7 percent to 2,658.55.
The S&P index rose 2.7 percent with financial and technology leading all sectors, and the Nasdaq composite increased 3.3 percent with Amazon and Apple both experiencing increases, CNBC reported.
The "trade tiff" has also failed to dent the strong global economic outlook, Stovall said. On Friday, Beijing released a $3 billion list of US goods targeted for possible retaliation over an earlier USA tariff hike on steel and aluminum imports. "He's done these things in the past, and now it looks like the markets are telling us, 'Yep, that's what's happening'". Bank of America added $1.27, or 4.4 percent, to $30.44. While these are aimed at protecting USA technology from China's predatory practices, not a few investors fear that China will respond with its own sanctions against major US tech firms.
USA markets fell swiftly earlier this year when he imposed steep tariffs on steel and aluminum imports. The Russell 2000 index of smaller-company stocks gave up 30.15 points, or 1.9 percent, to 1,513.57. The Federal Trade Commission on Monday announced it is investigating the company after reports that Cambridge Analytica abused the information of 50 million users.
Benchmark U.S. crude fell 33 cents to settle at $65.55 per barrel on the New York Mercantile Exchange. Today, it's little changed at 15768.89. The stock eked out a gain of 67 cents, or 0.4 percent, to $160.06.
The Dow's gain of 2.8% was its biggest since August 2015.
Gold fell $13, or 1 percent, to $1,342 an ounce.
It also weakened considerably against the British pound (-0.4pc), euro (-0.6pc), Japanese yen (-0.9pc) and New Zealand dollar (-0.4pc).
In Europe, Germany's DAX fell 0.8 percent, while France's CAC-40 lost 0.6 percent.
In Asia, Japan's benchmark Nikkei 225 gained 2.7 percent. South Korea's Kospi edged up 0.5 percent to 2,448.42.