The S&P 500 fell 0.8 percent last week, its first weekly decline in three weeks.
The surge in COVID-19 cases continued to be a concern for investors.
The US reported more than 3 million new cases between November 1 and 22. Hospitalisations for COVID-19 hit record highs for 12 consecutive days to Saturday.
The US has been slow to implement restrictions to slow the spread of the virus but even Europe’s response to the pandemic has been criticised by the World Health Organization for being “incomplete”.
“They missed building up the necessary infrastructure during the summer months, after they brought the first wave under the control,” said the WHO’s David Nabarro. “Now we have the second wave. If they don’t build the necessary infrastructure, we’ll have a third wave early next year.”
Also missed during better times have been government debt reduction. Now, with the pandemic, debt has been escalating among developed countries as they implement fiscal stimulus to support the economy.
“No government is making hay while the sun shines. In other words, when growth has been strong, governments have not cut down their debt levels. So they’re going higher and higher,” said Sonja Gibbs, the Institute for International Finance’s managing director of global policy initiatives, who warned of increasing dangers for investors who invest in government bonds.
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