U.S. equities tumbled lower last week as a surge in new Covid-19 cases in several regions caused some state and local governments to pause or roll-back business reopening plans and implement stricter social distancing measures.

U.S. equities rose higher last week despite reports of spikes in Covid-19 cases in some states and disappointing jobs data as markets were buoyed by the Federal Reserve’s corporate bond purchase program announcement and a stronger than expected rebound in May consumer spending.

Stock markets around the world suffered their worst weekly losses since mid-March last week, ending a three week stretch of strong gains, as investor sentiment was dampened by an acceleration in new Covid-19 cases in more than 20 U.S. states and by a cautionary message from the Federal Reserve at their monthly meeting that highlighted the potential for a more drawn-out, uneven recovery, including a long road back for the labor market.

U.S. equities surged higher for the third straight week as last week’s employment data defied expectations with 2.5 million jobs added to the economy in May compared to the consensus economist forecast for 7.5 million jobs lost.

U.S. equities closed out the month of May with another strong weekly performance as optimism around the progress of reopening the economy continued to dominate investor focus, despite concerns from the lingering impacts of the pandemic and a recent escalation in international trade tensions and domestic civil unrest. For the week, the S&P 500 gained 3.0%, which brought its monthly return to 4.8% for May, while the Nasdaq Composite and Dow Jones notched returns of 1.8% and 3.8%.