FILE PHOTO: A man wearing a protective face mask is reflected on a stock quotation board outside a brokerage, amid the coronavirus disease outbreak, in Tokyo, Japan November 10, 2020. REUTERS/Issei Kato
The surge in new coronavirus cases comes as vaccine trial results from Moderna on Monday showed that its COVID-19 vaccine candidate appears to be 94.5% effective in preventing infection. That announcement had caused markets to rally, with the Dow Jones and S&P 500 indexes reaching record highs. U.S. consumers also bought motor vehicles at a much slower pace than in previous months. There were increases in sales of electronics and appliances, as well as building materials and garden equipment but households cut back spending on sporting goods and hobbies, clothing, furniture, drinking and dining out.
U.S. Federal Reserve Chairman Jerome Powell said on Tuesday the current surge in coronavirus cases is a big concern, and the economy will continue to need both fiscal and monetary policy support.