Traders work before the closing bell at the New York Stock Exchange on Aug. 14, 2019 in New York City. JOHANNES EISELE | AFP | Getty Images

Major U.S. stock indexes may have recovered from their recent lows, but Citi Private Bank warned on Monday that the worst may not be over. "In the event that we have a very significant second wave of disease in the United States that cause a further shutdown of the economy ... that clearly is not priced into the market," David Bailin, the bank's chief investment officer, told CNBC's "Squawk Box Asia." "The other thing that may not be priced into the market is the fact that this virus may take another 18 to 24 months to really cycle through the globe, and ultimately have a vaccine," he added.

In the second quarter we expect earnings to literally fall by 40% or more across the board. David Bailin Citi Private Bank

The coronavirus pandemic has infected over 2.4 million people globally, with the U.S. reporting the highest number of cases worldwide — around 760,000, according to data compiled by Johns Hopkins University. The rapid spread prompted states across the U.S. to impose lockdown measures of varying degrees, which caused unemployment to spike as businesses struggle to stay afloat.

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