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%.

Stock markets stumbled last week as investor sentiment was weighed down by a resurgence in trade tensions between the U.S. and China and concerns that the economic recovery may be more drawn out than expected following cautious commentary from Federal Reserve Chairman Jerome Powell among others.

U.S. equities posted strong gains last week as investor sentiment was bolstered by efforts to reopen businesses across the country with at least 30 states already having lifted some restrictions or in the process of doing so this month. For the week, the tech-heavy Nasdaq Composite index continued to lead the way with a 6.0% gain, while the S&P 500 and Dow Jones returned 3.6% and 2.7%, respectively.