Markets fell on Monday.
The S&P 500 tumbled 1.6 percent, the STOXX Europe 600 plunged 2.3 percent and the Nikkei 225 fell 1.3 percent.
Oil prices plunged after OPEC and its allies agreed to raise output. West Texas Intermediate crude fell 7.5 percent while Brent fell 6.8 percent.
Allianz chief economic advisor Mohamed El-Erian said that markets are exhibiting “concerns about market technicals and concerns about growth”.
Morgan Stanley chief US equity strategist Mike Wilson noted: “Market breadth has been deteriorating for months and is just another confirmation of the mid-cycle transition, in our view. It usually ends with a material (10-20%) index level correction.”
Rising COVID-19 cases also remained a concern, with the US reporting nearly 26,000 new cases a day in the last seven days through Sunday, up from a seven-day average of around 11,000 cases a day a month ago.
Still, billionaire investor Bill Ackman is relatively sanguine about the surge in cases, saying on Monday: “I don’t think it’s going to change behavior to a great extent.”
“We are going to have an extremely strong economy coming in the fall,” he added.
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