The optimism on trading floors was shattered when Federal Reserve boss Jerome Powell signalled the world's top economy would take some time to bounce back.
While traders continue to buy into world markets on hopes the economy will bounce back, analysts urged some caution.
While tensions between China and the US continue to play in the background, the general mood at the start of June has been upbeat.
Governments in Europe and Asia have become confident enough to lift containment measures.
Global markets have been on a roll for weeks with countries slowly reopening after shutdowns and trillions of dollars in stimulus and central bank support,
Violent anti-racism protests across the US have fuelled worries of a pick-up in COVID-19 infections and more pain for the world's top economy.
Despite the threat of another trade war, investors are focusing on the easing of lockdowns around the world.
The US announced sanctions against a Chinese government institute and eight companies for human rights violations.
The World Bank warned the crisis could leave about 60 million in extreme poverty, adding that it saw the global economy contracting five percent this year.
US biotech firm Moderna reported "positive interim" results in early testing of a vaccine candidate.
The gains come despite a flurry of downbeat economic data, including Monday's news that Japan had fallen into its first recession since 2015.
The downbeat mood was compounded by another spike in US jobless claims and overshadowed news several countries were easing strict lockdown measures.
Federal Reserve officials also warned about the long-term financial impact of an extended shutdown.
Wuhan reported six new infections in two days and South Korea announced its biggest spike in new cases for more than a month.
There are concerns of a second wave hitting South Korea and China, which had been slowly reopening their economies.
Traders remain buoyed, as stimulus and central bank backstopping measures along with easing China US-tensions are providing much-needed reassurance.
With countries from Asia-Pacific to Europe and US states reopening their shattered economies, global equities have enjoyed a strong revival.
The easing of restrictions was providing a much-needed boost to oil markets.
Trump suggested he could lump new tariffs on China over its handling of the virus outbreak.
Officials warned that a return to normal would take time as overseas demand for exports remained limited.
Equities were broadly lower Tuesday, though they were fluctuating throughout early business.
The woes on Wall Street discouraged traders in Asia.
After a Sunday videoconference, the top producers agreed to slash daily production by 9.7 million barrels from May.
China has largely brought the disease under control within its borders since the COVID-19 outbreak first emerged in the city of Wuhan late last year.
The rally followed months of slumping prices after the COVID-19 outbreak sapped demand as countries around the world are under lockdown.
The slowing rate of news infections is providing some much-needed buoyancy to equities as investors eye an easing of lockdown restrictions.
Attention this week will be on a planned meeting of OPEC and other key crude producers.
Traders' focus has returned to the devastation wrought on populations and the long-term impact of the pandemic.
The World Bank warned that fallout from the coronavirus pandemic could bring China's growth to a standstill.
The unprecedented $2 trillion plan helped spur a surge across global equities as panicked traders worried about the impact of the coronavirus.