The Dow Jones Industrial Average dropped over 900 points or 3%, before bouncing off that low, while the Nasdaq Composite and S&P 500 declined more than 3%.
Both the S&P 500 and Nasdaq are now negative for the month of October.
Dow members Microsoft, Chevron paced the drop along with Boeingafter announced it will be cutting workers as it reported its fourth straight quarterly loss as the pandemic continues to hurt business.
European indices were also under pressure as Germany and France reportedly both consider additional lockdowns to curb the spread of COVID-19. French media outlet BFM TV reported that the government is considering another national lockdown.
The U.S. is also seeing new coronavirus cases rise, hitting 68,967 on Tuesday, an all-time high, according to a Wall Street Journal analysis of Johns Hopkins data.
More than 8.7 million people in the U.S. have contracted COVID-19, resulting in more than 226,000 deaths, according to Johns Hopkins data.