Markets rebound but COVID-19 may still “spook consumers”

Markets mostly rebounded on Wednesday.

The S&P 500 jumped 2.0 percent and the STOXX Europe 600 rose 1.6 percent.

Earlier in the day, Asian markets had declined, with the Nikkei 225 closing down 1.0 percent.

“Broadly, the technology sector is leading the recovery,” said James Ragan, director of Wealth Management Research at DA Davidson.

However, Donald Calcagni, chief investment officer with Mercer Advisors, is wary of the tech sector following its recent rally. “Those gains didn’t make a lot of sense,” he said.

In addition, Calcagni remains worried about COVID-19, saying that reopening the economy with the virus still around is “going to spook consumers”.

Underlining the threat still posed by COVID-19, a trial for a potential vaccine being developed by AstraZeneca PLC has been halted after a participant was struck by an unexplained illness.