The technology-heavy Nasdaq, the Dow Jones Industrial Average, and the S&P 500 all finished higher.
It came after lackluster trade in the UK and Europe, with London’s FTSE 100 climbing briefly before sliding again.
In Japan, the Nikkei 225 stock index increased by 10.2%, or 3,217 points, following the previous day’s drop.
The stock market plunge began on Friday, following negative US employment numbers for July, which revealed that the unemployment rate increased, raising worries of a recession.
There has also been criticism that shares in big technology companies, particularly those investing substantially in artificial intelligence (AI), are overvalued.
Economists are divided on the prospects for the US economy, with some cautioning that it is too early to claim the world’s largest economy is in decline.
If it does, however, it will have far-reaching ramifications.
“What happens in the US economically and financially does not stay in the US,” said economist Mohamed El-Erian, who also serves as president of Queens’ College in Cambridge.
“The United States has been the primary generator of global economic growth; the US consumer is a critical engine of economic activity, therefore the world as a whole would suffer if the United States entered into a recession.
Fears of a recession have spurred calls for the US Federal Reserve to lower interest rates at its next meeting in September.
