Investors in the $51tn US stock market are coming around to the view that the spread of the Delta coronavirus variant will dampen the global economic recovery, threatening a record-breaking rally.
The benchmark S&P 500 index on Wednesday fell by the most in a month before eking out a minor gain on Thursday. The big stock indices in Europe and Asia closed lower on Thursday.
Signs of a slackening recovery have been accumulating in recent weeks as the coronavirus spreads again, with surveys pointing to weaker growth in business activity in several regions of the US as well as deteriorating consumer confidence trends. Data on Tuesday added to the worries confronting investors, as retail sales in the country dropped more quickly than expected. Weak economic data from China has only added to concerns.