The S&P 500 has given up roughly 2.78% so far today as news of increasing coronavirus cases across certain U.S. states is increasing unease. Specifically, California, Texas and Arizona all reported records for daily infections Tuesday.

Not surprisingly, some of the hardest hit names on the market today are airlines and brick and mortar retailers. American Airlines (NASDAQ:AAL) is down over 5.9%, while Kohl's (NYSE:KSS) is down around 5.5%. The ramifications of increased COVID-19 cases span across all sectors and could threaten the market's attempt to rally over the last month. An area of big concern is Florida, where cases have risen rapidly in conjunction with the states reopening. Tuesday saw more than 3,000 more cases added. With its large theme park in the state, Disney (NYSE:DIS) shares are down over 5% in response to the news.

Cash and virus news clippings

Image Source: Getty Images

Where this will lead the market through the rest of the week is difficult to say. New York, New Jersey, and Connecticut are all reacting quickly to the rising caseloads in other states by implementing quarantine requirements for travelers that are coming from those hot spots. Clearly investors are seeing this as a concern that the country could fall back into the economically sensitive state it was in only a few months ago. How much of this will actually come to fruition is very tough to call.

Looking ahead

Online companies like Zoom Communications (NASDAQ:ZM) may enjoy continued enthusiasm from investors at the prospect of ever more digital meetings. Industries that could face even more pressure include airlines and restaurants. The desire and ability of consumers to travel is being threatened yet again. Stocks related to gambling, particularly sports betting, are also having a tough day as fears rise of canceled sporting events, such as the NFL's fall season. Investors are being cautious when it comes to coronavirus news. There are few areas of the market and economy, if any, that won't face pressure if COVID-19 begins to wreak havoc on the economy again.

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