For the second time in just three days, the market plunged the most percentage-wise since October 19, 1987.
Trading overnight was volatile with Dow futures giving back more than 1,000 points as investors try to weigh the uncertain economic impact of the coronavirus outbreak.
The S&P 500 and Nasdaq closed the day with a decline of around 12 percent each.
The S&P 500 is down about 28% from the record high it reached last month.
The circuit breaker was also triggered for the third time in the last week, leading to a 15-minute halt in trading shortly after the opening. The S&P/TSX Composite Index, meanwhile, lost more than 1,355 points or nine per cent.
Jeffrey Kleintop, chief global investment strategist at Charles Schwab, told The Telegraph: "It's a market adrift with nothing to hold on to".
It happened as a key measure of stock market volatility, called "Fear Gauge" has surged to high.
Tuesday's unpredictable path for share prices unfolded in the wake of reports that the Trump administration will press Congress for $850bn in stimulus funding to shore up the USA economy from an onslaught of coronavirus disruptions.
Nets say Kevin Durant, 3 other players test positive for new coronavirus
Four members of the Brooklyn Nets have tested positive for the coronavirus , the team announced Tuesday. The two-time NBA Finals MVP had experienced no symptoms before testing positive, reports Charania.
Wayne County Court Measures
All participants for hearings that do proceed in civil and family chambers are required to attend by phone. On Friday, a five-day murder trial remains scheduled to start on Monday in Shawnee County District Court.
First presumptive case of coronavirus reported on Vancouver Island
Another health care worker has also tested positive for the virus, a woman in her 40s who lives in the Fraser Health Region. Foreign Affairs Minister Francois-Philippe Champagne said Canada made the decision after the USA government asked for help.
The Federal Reserve has been trying to do what it can to help the economy, and over the weekend it slashed short-term interest rates back to their record low of almost zero.
"Despite whipping out the big guns", the Fed's action is "falling short of being the decisive backstop for markets", said Vishnu Varathan of Mizuho Bank in a report.
Monday's trading halt marks the third time since the coronavirus outbreak that USA markets have paused activity.
The big downside moves in risk assets came in spite of the Fed's massive campaign to stimulate the economy in the face of the coronavirus slowdown and to prevent broader financial contagion.
The G7 emergency leaders meeting was a sign of global cooperation but there was little in the way of specifics offered, unlike the actions taken during the 2008 global financial crisis. Many companies have warned of lower revenue, and most market watchers are bracing for a U.S. recession. Share prices are volatile after a brutal sell-off that gave the USA stock market its worst loss in more than three decades. "Closing the markets would not change the underlying causes of the market decline, would remove transparency into investor sentiment, and reduce investors' access to their money". "This has much further to run and we're only at the beginning of social isolation in Europe and the USA, and the effects on the real economy are still to be felt".
The US dollar is consolidating its recent gains over its major peers, despite the Federal Reserve cutting interest rates twice over the past two weeks to near zero.
The Federal Reserve has implemented a number of emergency measures to stop credit markets from seizing up- injecting hundreds of billions of dollars into the "repo" market banks use to fund their day-to-day operations, and easing conditions to make it easier for banks to lend.
The price of crude oil dropped more than 8%.