by Maurice (Mo) Spolan, Investment Research Analyst
Equity markets declined last week, punctuated by the more than 2% fall across all American indices on Friday. New coronavirus cases have surged in the U.S., and sadly, daily new case numbers are now in excess of those reported at any point during April. Florida and Texas, two of the hardest-hit states in recent weeks, rolled back or paused reopening efforts. Houston’s hospital capacity is at 97%, while Arizona, a state also incurring a recent surge, said that its hospital beds are nearly 90% full. Bellwether companies such as Disney and Apple are halting plans to reengage with customers, as Disney delayed plans to welcome visitors back to Disneyland and Apple closed recently re-opened stores in areas with rising cases. With this all noted, month-over-month measurements of consumer health, such as retail sales and spending, indicate that economic activity has risen considerably since the trough in April.

Heightened volatility is likely to be present for the remainder of 2020 as COVID cases surge and retreat, medical professionals learn more about the disease and update their best-practice guidance, economic data continues to trickle in, and investors price in various scenarios.