J.P. Morgan: US Covid-19 hospitalisations are declining

J.P. Morgan: US Covid-19 hospitalisations are declining

Verenigde Staten Coronacrisis
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The number of people in hospital in the US has started to decline. The big question is whether this can be sustained over the winter.

If so, economic activity should reaccelerate. If not, then the recent rise in Treasury yields could be interrupted. Either way though, by next spring we think that enough people will have been vaccinated or have already caught Covid that services spending will be able to recover further. So while winter could potentially provide a bump in the road, we expect Treasury yields to continue to move higher by the end of next year, supporting the outperformance of value stocks.

Number of people in hospital with Covid-19, per million people

0410 J.P. Morgan

Source: Our World in Data, J.P. Morgan Asset Management. Data as of 27 of September 2021.