In corporate news, NVIDIA +3.4% after BofA Merrill Lynch added the chipmaker to its 'US 1 List, ' and Tesla opens +2.4% after reporting Q1 production rose 40% Q/Q and that it expects Model 3 production to climb rapidly through Q2.
Stocks moved sharply higher in the last hour of trading, allowing the market to claw back a good part of the ground it lost a day earlier. Shares are expected to start trading today on the New York Stock Exchange.
Traders said they were heavily focused on technical levels after investors fled on Monday when the S&P 500 breached its 200-day moving average.
The S&P 500 fell 58 points, or 2.2 percent, to 2,581, slightly above its low for the year reached February 8. "I don't know what will happen the rest of this week, but as we get into earnings season, I do think it will help the market".
E-commerce giant Amazon, one of the best performers over the past year, declined after U.S. President Donald Trump criticized the company in a series of tweets. The benchmark index lost 1.2 percent in the first quarter of 2018 following nine straight quarters of gains. Walmart stock fell 3.8 per cent.
Trouble for technology companies set off a rout Monday as markets were also rattled by growing fears about a trade war with China.
All 11 major sectors of the S&P 500 were in negative territory.
US markets were closed Friday for the Good Friday holiday.
Those attacks came on the heels of a Twitter message from the president on Thursday, in which he seemed to lend credence to a report suggesting he would try to go after the firm using tax or antitrust laws.
British lab confirms Novichok used in spy attack but can't determine source
There are doubts that rogue agents could have carried out the attack without approval from the top levels of Russian government. The former general said Russian President Vladimir Putin is "the last guy to benefit" from the spy poisoning.
TRADE FEARS: China raised import duties on a $3 billion list of US goods in response to USA tariffs on imported steel and aluminum.
U.S. stocks dropped in early trading as weakness in technology shares persisted amid renewed Presidential criticism of Amazon.com and retaliatory tariffs from China. China implemented retaliatory tariffs on a series of United States products, though not on tech.
Among a few bright spots, Humana HUM.N jumped 4.4 percent Reuters reported Walmart WMT.N was in early-stage talks with the health insurer about developing closer ties, with acquisition discussed as one possibility.
Tesla (TSLA) came under regulatory scrutiny after a second crash this year involving the electric vehicle company's Autopilot driver-assistance system, the latest of which involved a death.
Media conglomerate Viacom sank 4 percent following reports that sister company CBS wanted to buy it for below its current market value. THEY LOSE A FORTUNE, and this will be changed.
The blue chip Dow Jones Industrial Average closed at 24103.11, up 2.4%. The S&P 500 fell by 2.3 percent, after recovering from a decline of around 3 percent.
COMMODITIES: Benchmark U.S. crude lost $1.71, or 2.7 percent, to $63.23 a barrel in NY.
Wall Street futures pointed higher, the dollar steadied against the yen after three days of decline and gold and government bonds were in reverse.