Equity markets woke up to bad news on Friday that sent the major indices down more than 2.0% at the low of the day. In the news, a new variant of COVID 19 has sprung up in South Africa and is giving authorities some concern. The new variant, on top of a rebound in case counts and widening restrictions in Europe, threaten to put a damper on the global economic recovery. Another widespread shutdown could put the already overstrained global supply chain into deeper trouble.

This week, traders will be on high alert for a number of key economic reports including the Fed?s Beige Book on Wednesday and the NFP report on Friday. The NFP report should show a positive change in net jobs while the Beige Book may be the more important release. If conditions within the Fed?s 12 reporting districts are deteriorating it could send the indices down to new lows.