The Dow Jones Industrial Average on Tuesday added 389.17 points, or 1.65 per cent, to 24,033.36. The S&P 500 increased 32.57 points, or 1.26 per cent, to 2,614.45, Xinhua news agency reported.
The Nasdaq Composite Index was up 71.16 points, or 1.04 per cent, to 6,941.28.
US equities slumped on Monday, the first trading day in April, as worries about trade issues and a sharp decline in the technology sector weighed on the market. The Dow lost over 450 points when the market closed, while the tech-heavy Nasdaq erased over 2.7 per cent.
In corporate news, shares of Amazon rebounded nearly 1.5 per cent on Tuesday after declining over 5 per cent in the previous session.
US President Donald Trump on Saturday attacked Amazon for scamming the US Postal Service, adding the service loses "billions of dollars" delivering packages for the e-commerce giant.
Investors were also monitoring the developments of trade relations between China and the US.