Coronavirus resurgence looms over Wall Street rally

The resilience of a months-long rebound in US stocks is being put to the test as a long-feared resurgence in coronavirus infections weighs on hopes of a sharp economic recovery in the United States.

Investors have for weeks flagged a potential rise in coronavirus infections as a possible stumbling block to the rally in US stocks. That threat increasingly appears to be materialising, with California, Texas and other US states notching big jumps in coronavirus infections this week, even as other areas like New York appear to have curbed their infection rates.