Renewed US-China tensions keep investors on edge

US STOCKS retreated slightly last week, as a historic rally showed signs of cracking under the weight of unemployment data and tensions over US-China relations.

The S&P500 tested new record levels before the first increase in new jobless claims since March and a diplomatic clash between the world's two largest economies stalled the rally.

This week, wobbles are likely to continue unless the US Congress can reach a compromise on a stimulus bill, tech earnings surpass expectations or if Covid-19 statistics improve.