The US stock market suffered heavy losses in the last week after a long bullish run that had recently pushed major indices to record high. The selloff is supported by the trader’s concerns over the second wave of COVID-19, which has been impacting the reopening process. Last week, the US has reported the largest single-day rise in infections.

The U.S. has recorded above 45,000 new infections on Friday, up from a previous record of 39,972 cases reported Thursday.

All three indices have reported a weekly loss. On Friday, the Dow and the Nasdaq Composite reported their worst single-day decline since June 11.

The bearish sentiments regarding the energy sector have also smashed stock indices as the energy sector remained the worst performer of the 11 S&P sectors last week. The poor performance is blamed on the pessimistic economic forecasts and slower than expected reopening activities.

The US oil futures are currently trading below $40 level while market analysts believe oil prices wouldn’t move upward in the current situation. Meanwhile, Deloitte’s report hinted that U.S. shale producers may see $300bn in assets write-downs for the second quarter. The report also says that 30% of the shale producers are struggling to breakeven at $35 a barrel.

Some market analysts believe shares of the big companies would retreat ahead of second quarter earnings. This is because the majority of companies listed on S&P 500 index are likely to report record losses. For instance, companies like Walt Disney, travel companies, airline industry and energy companies could be among the biggest losers.

Although unemployment claims declined in the last couple of weeks and consumer spending increased from previous months, analysts are forecasting bumpy ride ahead.

“As good as the recent economic data has been, we want to make it clear, it could still take years for the economy to fully come back,” wrote Ryan Detrick, senior market strategist at LPL Financial, in a Friday research note.