Stocks fell as coronavirus infections swept across U.S. states, triggering fears of more restrictions. The pound pared losses as the U.K. agreed on further talks with the European Commission to address the impasse over a trade deal.

The S&P 500 dropped from an all-time high, led by energy, real-estate and financial companies. Intel Corp. tumbled on news that Apple Inc. is planning a series of new Mac processors for introduction as early as 2021. Interactive Brokers Group Inc. sank after saying it was experiencing “a significant failure” across multiple parts of its data-storage system. The Nasdaq 100 rose for a ninth straight day -- its longest winning streak in almost a year. Boeing Co. jumped as UBS Group AG recommended buying shares of the planemaker. Airbnb Inc. boosted the price range of its initial public offering.

The U.S. is now averaging about as many deaths per day from COVID-19 as it was in April, and several large states -- including California, New York and Pennsylvania -- are facing alarming upward momentum in hospitalizations. Anthony Fauci, the government’s top infectious-disease expert, warned that the Christmas season could be worse than Thanksgiving for fueling the spread of disease. Meanwhile, Governor Andrew Cuomo said indoor dining in New York City -- the early epicenter of the pandemic -- will close if the regional hospitalization rate hasn’t stabilized after five days.

As coronavirus cases surge, markets are increasingly expecting a stimulus deal to be done -- especially after last week’s disappointing jobless data. With Republican and Democratic negotiators struggling to reach an agreement on both a mammoth government spending bill and COVID-19 relief, lawmakers are set to postpone what had been a Friday night deadline for passing a bill. Talks over a US$908 billion pandemic relief plan have slowed, with negotiators unable as yet to resolve key details on state and local aid as well as liability protections for businesses.

“The market is basically assuming that it gets done,” said Bryce Doty, portfolio manager at Sit Fixed Income Advisors. “Now any setback makes the market vulnerable, because it’s built in that they will pass it.”

U.K. Prime Minister Boris Johnson will travel to Brussels for crisis talks with European Commission President Ursula von der Leyen as they try to break the deadlocked negotiations over a post-Brexit trade deal. The two spoke on Monday evening amid warnings from British officials the talks could collapse unless negotiators make a rapid breakthrough.

A record close for the S&P 500 last week did little to move the needle on valuations from a recent tight range. Still, multiples are tracking higher and well-above the long-term average.

“On a classic valuation metric, the market looks very expensive. But on a price-to-cash return basis, it actually doesn’t look that expensive,” Dennis DeBusschere, head of portfolio strategy at Evercore ISI, said in a Bloomberg Television interview.

These are some of the main moves in markets:

Stocks

The S&P 500 fell 0.2 per cent at 4 p.m. New York time.
The Stoxx Europe 600 Index fell 0.3 per cent.
The MSCI Asia Pacific Index fell 0.2 per cent.

Currencies

The Bloomberg Dollar Spot Index increased 0.1 per cent.
The euro fell 0.1 per cent to US$1.2109.
The Japanese yen strengthened 0.1 per cent to 104.05 per dollar.

Bonds

The yield on 10-year Treasuries decreased three basis points to 0.93 per cent.
Germany’s 10-year yield decreased three basis points to -0.58 per cent.
Britain’s 10-year yield decreased seven basis points to 0.283 per cent.

Commodities

The Bloomberg Commodity Index fell 0.5 per cent.
West Texas Intermediate crude decreased 1.1 per cent to US$45.74 a barrel.
Gold strengthened 1.3 per cent to US$1,863.65 an ounce.