Worsening Virus Trends Are Raising Alarms for Stock Investors
- S&P 500’s surge was premised on likelihood of vaccine: Goldman
- Return-to-normalcy stocks take a hit as hopes for vaccine ebb
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As the likelihood of additional federal stimulus fades, U.S. stock investors are returning their focus to the coronavirus pandemic and not liking what they see.
High-frequency data that tracks economic activity shows a slowdown in the recovery from the height of the lockdowns, with Americans again cutting back on flights and going out to eat less often. Public-transit use also remains low, while jobless claims are stubbornly elevated. Meanwhile, the prospects for a vaccine in the next few months have also waned just as the latest data shows an uptick in cases.