Stocks rose solidly on Monday, recovering some of the losses from the previous session's steep sell-off, but investors remained wary about the bounce as coronavirus fears lingered.

The Dow Jones Industrial Average closed 143.78 points higher, or 0.5%, at 28,399.81. The S&P 500 gained 0.7% to end the day at 3,248.92 while the Nasdaq Composite was up 1.3% at 9,273.40.

Nike led the Dow higher with a 3.1% rise after analysts at UBS and JPMorgan recommended buying the stock on coronavirus-related weakness. JPMorgan called this recent pullback a "multi-year buying opportunity." Tesla, meanwhile, jumped more than 19% to record levels after an Argus Research analyst hiked his price target on the stock to $808 per share.

The major averages reached their session highs after the Institute for Supply Management said its manufacturing gauge showed activity in the sector expanded. Economists polled by Dow Jones expected a contraction in manufacturing activity for January. The 30-stock Dow was up more than 350 points at its high of the day.

However, stocks gave back some of Monday's gains after Carnival confirmed one of its guests tested positive for coronavirus six days after leaving one of its ships. Carnival shares erased earlier gains and closed more than 1% lower on the news.

"The shorter-term uncertainty around the coronavirus is really affecting everything," said JJ Kinahan, chief market strategist at TD Ameritrade. "You may continue to see sort of reallocation."

The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.