Stocks shrug off renewed coronavirus worries

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U.S. stocks flipped between small gains and losses Monday as reports of new coronavirus infections worldwide surged.

Stocks have been trading choppy in recent weeks on growing fears of a second wave of infections after rising more than 40% from March lows on hopes the worst of the pandemic was over. Investors have grown optimistic about a recovery following a massive stimulus package from Congress and unprecedented moves from the Federal Reserve to help support the economy.

“Periods of elevated policy uncertainty have generally coincided with lower-than-average equity allocations during the past 30 years,” analysts at Goldman Sachs said in a note. Financial markets around the world paused Monday as the global virus tally approached 9 million. Great uncertainty remains over whether countries that have been relaxing pandemic-fighting restrictions on travel and business might end up re-imposing broader controls that would slow a recovery from the worst global downturn since the Great Depression in the 1930s.

The World Health Organization on Sunday reported the largest single-day increase in coronavirus cases by its count, at more than 183,000 new cases in the previous 24 hours. The U.N. health agency said Sunday that Brazil led the way with 54,771 cases and the US next at 36,617. India confirmed 15,400 new cases.

 

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