Bank of America Global Research warns that the number of new covid-19 cases is climbing at an alarming rate across a majority of the US.
"Since our last update, new virus cases in the US have continued to rise and indicators of economic activity appear to be moderating...The 7-day average of new daily cases has increased by 72% from the September trough to 58.3k as of yesterday. This has outpaced the 44% rise in testing over the same period and as a result the positive rate has increased by 0.6pp to 5.5%. Hospitalizations and deaths have also started to trend higher," BofA notes.
"With the economic data pointing to a moderation in activity, we remain very concerned that the recent surge in new virus cases will hinder the economic recovery. Moreover, we fear that states that have experienced relatively stronger economic recoveries are those currently experiencing the most severe virus outbreak . This could lead to an increase in voluntary social distancing in these states or government mandated measures to restrict activity," BofA adds.