Investors meanwhile shrugged off a warning from the Organization for Economic Cooperation and Development, which predicted the global economy is poised to slow sharply. Markets in Asia ended mostly higher and European markets were mixed.
Stocks surged on Monday following last week's rout, when Wall Street suffered its worst week since 2008. Futures underlying the Dow Jones Industrial Average, S&P 500, and Nasdaq jumped between 2% and 2.2%. The S&P 500 index rose 6 points, or 0.2%, to 2,961.
The Nasdaq Composite dropped 3.54% to 8,635.25.
But a statement from a meeting of G7 finance ministers and central bank governors today only said they stood "ready to take actions, including fiscal measures where appropriate".
It has recovered all of its losses from the day before, when worries flared about how effective rate cuts can be in a health crisis. All 11 segments posted gains. France's CAC 40 rose 1% to 5,446.
Elsewhere, the company behind currency exchange Travelex warned that first-quarter profits would be £25m lower than in the same period a year ago as it counts the cost of a recent cyber attack as well as the COVID-19 outbreak. Numbers over 50 percent are viewed as positive for the economy.
USA stocks surged Wednesday as investors cheered a strong Super Tuesday performance by former Vice President Joe Biden and growing signs of a coordinated response to the coronavirus by economies around the world.
While the Dow gained almost 1,300 points on Monday, a one-day record, the Dow has lost almost 4,000 points in recent weeks.
United States futures were pointing to modest gains before the bell on Tuesday as investors eyed a statement from the Group of Seven on how they plan to counter the impact of the Wuhan coronavirus outbreak.
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It is the 15th confirmed case of COVID-19 in the US , not including evacuees from Wuhan and the Diamond Princess cruise ship. Saturday saw 2,623 people discharged from hospital after recovery, the commission said.
The rally may signal that investors expect central banks and authorities to take action to help mitigate some of the economic impacts of coronavirus. "The main thing the market is going to need to see is a peak in the infection rate on the coronavirus, and we're still some way away from that".
However, analysts warned the selloff after the rate cut underlined the Fed's limited powers. It might dampen it for a while, but it would do little to address the underlying issue itself.
Stock markets in the USA bounced back from recent losses on Monday (March 2), as the focus turned to assurances of central bank stimulus to counter the economic fallout from the coronavirus outbreak. Apple climbed 3.4% and Microsoft rose 2.1%. Hong Kong's Hang Seng slid 0.2%. Governments are taking increasingly drastic measures as they scramble to contain the virus.
Since the outbreak of the virus in December 2019, more than 3,000 people have died worldwide, with almost 90,000 confirmed cases.
Stocks slumped last week as the virus spread to more countries, raising the prospect of the sort of lockdowns that have brought parts of China to a halt. A separate PMI released Saturday by the National Bureau of Statistics and the China Federation of Logistics & Purchasing fell to 35.7 from January's 50. It was the index's eighth daily drop in 9 times. The last time that occurred was in late 2018, as a tariff war with China was escalating.
The scale of the selling is staggering.
On Monday, the Dow recorded its most important everyday get in much more than a decade on increasing anticipation for coordinated support from the Fed and other central banks.
On Wall Street, the benchmark S&P 500 index tumbled 2.8% despite the Federal Reserve's surprise 0.5% rate cut. In a sign of the severity of the concern about the possible economic blow, the price of oil sank 16%.
Benchmark U.S. crude rose $1.39 to $48. Treasury yields fell to more record lows as investors ratcheted back expectations for the economy and inflation.