US equities had their worst day since October as faltering efforts to contain a global spike in coronavirus cases has raised the prospect of even more onerous lockdown measures in some of the world’s largest economies.

Shares in more than 80 per cent of companies within the S&P 500 fell on the first trading day of the new year, with the Wall Street benchmark closing 1.5 per cent lower. Leading the declines were industries hardest hit by the coronavirus pandemic, including airlines, hotels and cruise operators. The tech-heavy Nasdaq Composite also lost 1.5 per cent.

Interest rate-sensitive sectors also ranked among the biggest losers, with property companies and utilities sliding as a measure of inflation expectations rose. The 10-year break-even rate, which is derived from prices of US inflation-protected government securities, breached 2 per cent on Monday for the first time since late-2018.