VIRUS SURGE INTERRUPTS HOPES FOR A SWIFT ECONOMIC RECOVERY

The worsening COVID pandemic risks choking off the U.S. economy’s fragile recovery and turn what some investors hoped would be a sprint back to normal into a long hard slog.

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States like California that had begun to take tentative steps to reopen their stores and restaurants are reversing course, while states across the Sunbelt that balked at taking preventative measures in the Spring are having to quickly backtrack as the number of Americans being hospitalized or dying from the virus hits new records almost daily.

“This is not a normal crisis in terms of data we have to monitor,” said Kristina Hooper, chief global market strategist for Invesco. With consumer spending, by far the biggest motor of the U.S. economy, still far below last year’s level, Hooper added, “This is an environment in which there is going to be a need for more fiscal stimulus or you could see a real hit to consumers.”