Markets fall as recovery enters “challenging” months

Markets were mostly lower on Thursday. The S&P 500 fell 1.0 percent and the STOXX Europe 600 fell 0.9 percent.

Earlier in Asia, markets were mixed. The Nikkei 225 rose 0.7 percent but the Shanghai Composite dipped 0.1 percent.

“The sell-off globally is being driven by the sharp spike in new coronavirus cases,” said Oliver Pursche, president of Bronson Meadows Capital Management.

Indeed, some economists think the US economy may already be taking a turn for the worse.

Gregory Daco, chief US economist at Oxford Economics, said that its broad index of the recovery “is reeling” after declining for four consecutive weeks.

Fed chair Jerome Powell said on Thursday that while he still sees the US recovery on a “solid path”, he acknowledged that “the next few months could be challenging”.