Stocks fall as COVID-19 may persist for months

The S&P 500 fell 4.8 percent last week after the Federal Reserve projected that the economic recovery will be weak.

Also probably holding back the market is the concern that the COVID-19 pandemic is far from over.

Indeed, new coronavirus cases and hospitalisations in record numbers swept through more US states over the weekend. Alabama reported a record number of new cases for the fourth day in a row on Sunday while Arkansas, North Carolina, Texas and Utah all had a record number of patients enter the hospital on Saturday.

Former Goldman Sachs executive Gary Cohn had told CNBC last week that the US is not even through the first wave of the COVID-19 outbreak and it could persist for months.

Meanwhile, in China, after weeks with almost no new COVID-19 infections, Beijing has in recent days recorded dozens of new cases linked to a major wholesale food market, resulting in the re-imposition of restrictions.