(Bloomberg) -- Stocks tumbled in the U.S. and Europe as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic.The S&P 500 Index fell about 3%, headed for the biggest drop in seven weeks, amid a surge in Covid-19 hospitalizations, especially in the Midwest. Energy shares sank with oil prices, and technology stocks were also among the worst performers. The VIX Index, a measure of expected U.S. equity volatility, climbed to the highest level since June.Boeing Co. slumped to a one-month low as it announced plans for more job cuts. Microsoft Corp. was among the biggest drags on the S&P 500 as investors focused on a forecast that fell short of analysts’ highest projections, looking past a decisively upbeat profit and sales report. General Electric Co. gained after reporting a surprise profit.The Stoxx Europe 600 Index fell to a five-month low, losing 3% as German Chancellor Angela Merkel reached a deal for a one-month partial lockdown to curb the spread of the virus. Auto and financial shares saw some of the steepest declines.The S&P 500 is down about 7% this week and Europe’s benchmark is more than 5% lower as virus cases surge and after American lawmakers failed to agree on an economic aid package before the Nov. 3 election. Analysts are also warning about increased volatility ahead of the presidential vote and in its aftermath, with some saying that a contested outcome is still a worrisome possibility.“We’ve obviously got the election hanging over our heads. Then obviously Covid accelerating to the degree that it has both here in the U.S. as well as in Europe,” said Lori Heinel, deputy global chief investment officer at State Street Global Advisors. “And then you’ve got the lack of stimulus, which in our estimation is still necessary to get us through this period until we get an ultimate medical solution. It’s the triple whammy right now.”Elsewhere, oil fell sharply on concern lockdowns will sap demand. Bitcoin headed to its biggest drop in almost two months after reaching the highest since January 2018.In Asia, stocks fared better. The MSCI Asia Pacific Index edged lower, and markets in South Korea and Shanghai posted modest gains. In China, indicators tracked by Bloomberg showed the recovery continued to display mixed signals while remaining broadly steady in October.These are some events to watch this week:Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Haruhiko Kuroda and President Christine Lagarde.The Chinese Communist Party’s Central Committee holds its plenum through Friday, where it’s expected to chart the course for the economy’s development for the next 15 years.Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November.The first reading of U.S. third-quarter GDP Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.Here are the main moves in markets:StocksThe S&P 500 Index dropped 2.9% as of 1:45 p.m. New York time.The Stoxx Europe 600 Index decreased 3%.The MSCI Asia Pacific Index fell 0.5%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.6%.The British pound declined 0.5% to $1.298.The Japanese yen gained 0.1% to 104.32 per dollar.BondsThe yield on 10-year Treasuries was little changed at 0.77%.Germany’s 10-year yield fell one basis point to -0.63%.Britain’s 10-year yield decreased two basis points to 0.21%.CommoditiesWest Texas Intermediate crude sank 5.7% to $37.30 a barrel.Gold weakened 1.5% to $1,880.17 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.