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The Dow Jones Industrial Average and S&P 500 were under pressure Friday, as concern over a Covid-19 resurgence weighed on global markets.

The Dow fell 57 points, or 0.5%, reversing course having earlier been in positive territory, and the S&P 500 fell 0.02%. The Nasdaq Composite added 0.3% as tech shares gained.

"The news is hitting European markets hard this morning as fears mount that the virus and restrictions will spread across the continent again," said Jim Reid, chief economist at Deutsche Bank, adding that "the curveball might be the U.S." given lower rates of vaccination domestically than in Europe.

"So although all the headlines are in Europe at the moment, will the U.S. be more vulnerable than many European countries over the course of the full winter? Recent history suggests the US have a higher bar for economic restrictions related to covid but it also has a lower vaccination rate than their European peers," he added.

Meanwhile, Nasdaq futures pointed higher, bolstered by a jump in stocks associated with the "stay-at-home" trade that characterized much of 2020. Treasury yields, which have jumped in response to rising inflation fears, retreated early Friday as investors flocked to safe-haven assets. Brent crude (CL=F) sank by over 3%, reflecting jitters that lockdowns will curb energy demand.

On Thursday, The Dow (^DJI) fell 230 points (0.2%), pressured by a drop in shares of Cisco (CSCO). The computer networking company posted quarterlyresults after the bell Wednesdaythat fell shortof analysts' expectations due to component shortages andthe company issuingweaker-than-expected guidance. Yet the S&P 500 gained and tech-heavy Nasdaq — led by gains from Tesla (TSLA) and Nvidia (NVDA) — ended at all-time closing highs.

There is no economic data on the calendar on Friday, however investors will be keeping a close eye on Washington, where the House is expected to pass President Joe Biden’s “Build Back Better” bill. The bill lays out the administration's plans to spend $1.85 trillion on education, healthcare and the climate.

Also in focus for the markets is Biden’s Federal Reserve chair nomination. Biden told reporters on Tuesday to expect the announcement of a nominee for Fed chair in "the next four days." The White House appears to beweighing two options: reappoint current chair Jerome Powell or Fed governor Lael Brainard.

"The market so far is believing that it will be Powell again, but any sort of a change would mean that they want to hear a reiteration of the monetary policy andforward expectations," Sonali Pier, Pimco's Managing Director and Portfolio Manager, told Yahoo Finance Live on Thursday.

"[That means] tapering, being at a pace of about $10 billion in treasuries, $5 billion in agency MBS, then thereafter seeing rate hikes but not a significant shift to be more hawkish," Pier added.