Stocks are gearing to trade lower as China’s economic growth slowed in July with retail sales increasing by 8.5% year-over-year, below the forecasted 11.5% growth. Industrial production growth also came in below estimates. The trend is only likely to worsen given the recent tightening in coronavirus restrictions in China.

U.S. equity markets continued to push to new record highs last week supported by strong corporate earnings announcements and better than expected economic reports, including an impressive July jobs report. The strong earnings and jobs reports overshadowed rising global Delta cases, which has added to supply chain complications in recent weeks.

Stocks had modest losses on light trading volume Friday, with Amazon dropping the most in more than a year after reporting its first quarterly revenue miss in three years and providing disappointing guidance. But the major averages wrapped up a strong month, even as volatility has increased alongside concerns about the economic recovery with the spreading of the COVID-19 delta variant.

Despite a sharp dip for markets to open trading last Monday amid peak growth concerns and mounting global Delta variant Covid cases, U.S. equities managed to rally back and push to new highs last week as investors turned their attention to strong corporate earnings results.

U.S. equities fell last week despite strong bank earnings and June retail sales. For the week, the S&P 500 was down 0.97%, the Nasdaq down 1.87%, and the Dow Jones down 0.52%. Meanwhile, long-term interest rates have tumbled in recent weeks with the 10-year Treasury yield falling to 1.21% as of Monday morning July 19, down from 1.5% a month ago and the first quarter high of 1.75%.