Thats what the currencies are showing.
DXY strong and the Loonie taking an unusual hard hit-prolly in part because crude has been coming off lately.
While I agree with your assessment, I also think it has to do with the number of people refusing to take the vaccine
Infections are rising fast and while the numbers won't approach what we had, it's still going to be significant.
I hadn't thought about the connection before you mentioned it but I really think that you may be right.
Who wants to be holding crude when the market panics and drops $20
NEW YORK, July 19 (Reuters) - Stocks on Wall Street fell around 2% on Monday, as a rise in worldwide coronavirus cases and deaths drove investors away from risky assets, crushing bond yields and share prices.
Oil prices plunged around 6%, driven down both by worries about future demand and by an OPEC+ agreement to increase supply.
New COVID-19 cases rose in England and Asia, with U.S. infections soaring 70% last week, dampening optimism on the economic recovery. The 10-year yield fell 9.2 basis points to 1.207%, a low last seen in February, while the S&P 500 fell for a third straight session (.SPX). read more
"Fears over peak economic data and a resurgence in COVID cases has the market on edge today," said Ryan Detrick, Chief Market Strategist for LPL Financial, in an emailed statement. "Of course, don't forget that the S&P 500 hasn't had a 5% correction since October, so you could say we are more than due for some turbulence."
MSCI's all-country world index (.MIWD00000PUS), a gauge of global shares, was down nearly 2%.
Investors are also worried about the specter of elevated inflation, which the market has long feared.
U.S. President Joe Biden on Monday acknowledged that prices for some items such as vehicles have increased but said that his administration would remain vigiliant over inflation and havoc it could wreak on the economy. read more
"Fear of stagflation will be a major concern for investors if a resurgence in COVID infections causes economies to slow while consumer prices continue an upward trajectory," said Peter Essele, head of investment management for Commonwealth Financial Network, in an e-mailed statement.
U.S. deaths from the coronavirus, spurred by the dominant Delta variant, are up 26%, with outbreaks occurring in parts of the country with low vaccination rates. About one in five new cases are in Florida, and the vast majority of people hospitalized for COVID are unvaccinated.
"The big concern for the market is whether we are going to see a slowdown in the global economic recovery, and this could be the overriding force which results in a bad period for equities in the weeks ahead," said Russ Mould, investment director at brokerage AJ Bell.