The second wave outbreak in the US was geographically widespread, while previous epicentres like New York and New Jersey did not see the local cases skyrocket, states like California, Texas, and Florida saw infection figures jump, raising concerns over possible economy shutdown again in near future. However, recent statements from the White House indicated that the administration do not intent to adopt any plans that might damage the economy.

As the epidemic news are mostly digested and reflected in the market, subsequent negative news did not trigger significant correction in US equities. Instead, markets slowly rallied in anticipation of more fiscal stimulus, as it was widely reported that more are on the way awaiting bipartisan action. With economic indicators like PMIs and confidence board indexes showing visible improvement, we see limited downside in the overall economy. That said, with the valuation levels at such dizzying heights, selection is the key; we expect technology and healthcare sectors to extend their great performance with robust earnings and strong fundamentals.