Sharp declines in U.S. stock index futures triggered trading curbs meant to slow panicked markets as the price of oil fell by more than 30 percent and bond yields crashed amid heightened worries over the coronavirus.
E-mini futures on the S&P 500 dropped by 5 percent in overnight trading Sunday, triggering automatic trading curbs that kick-in when the price falls below 5 percent of the closing price of the referenced index Friday. As a result, the futures contract cannot trade at a lower price until the cash market opens at 9:30 a.m., although trades may still be made at higher prices.
The last time futures trading hit the overnight limit was election night of 2016, when markets initially sold off following the news that Donald Trump had won the election. That selling pressure quickly subsided and the major indexes closed up by around 1 percent or so the following day.
The E-mini is an electronically traded futures contract based on the underlying S&P 500 index. The contracts are around one-fifth the size of the standard S&P futures contracts, earning them the monicker “mini.” They are considered highly liquid and are widely traded but they have, in a few past episodes, been prone to so-called “flash crashes.”
Cuba’s power grid collapses as US embargo pressures regime
Doxxed Holdout Clancy Juror Moved to Undisclosed Location for His Safety After ‘Black Republican’ Faces Backlash
Data Centers Are About to Burn More US Natural Gas Than Almost Every Country on Earth
Congressman Tom Barrett: ‘Being a socialist should disqualify him for people’s consideration in my district’
Philly serial killer probe could expose larger network behind apparent ‘snuff’ films, expert says
Lawyer says 250-foot Trump arch disrupts historic sightlines cherished by veterans seeking burial at Arlington
Missouri woman federally indicted over chilling death threats sent to Austin Metcalf’s family
Blue States with Powerful Teachers’ Unions Have Far Worse Reading Scores for Students Than Red States with Weak Unions
Republicans fear they have little to offer voters as Congress leaves town
China Throws Its Weight Around in America’s Backyard Over Taiwan Backing
Who is Bert Mizusawa The retired Major General challenging Sen. Mark Warner
A swath of past anti-Trump characters have lost Democratic primary bids
Who is Dario Amodei, the Anthropic CEO pushing independent AI oversight?
Dem’s data center attack in critical Senate race hits snag when money trail surfaces: ‘Jekyll-and-Hyde’
Kirk family has powerful evidence — but Utah law could derail wrongful death case: experts
Futures for the Dow Jones Industrial Average and the Nasdaq Composite remain above the level that would trigger curbs in those contracts.
The chaotic market action was not confined to equities futures on Sunday. Investors bid up Treasuries, pushing yields down to new record lows, and oil prices tanked.
The yield on the 10-year Treasury note sank 37 basis points to touch 0.448 percent in overnight trading Sunday. The yield on 30-year Treasuries fell below 1 percent.
Cuba’s power grid collapses as US embargo pressures regime
Doxxed Holdout Clancy Juror Moved to Undisclosed Location for His Safety After ‘Black Republican’ Faces Backlash
Data Centers Are About to Burn More US Natural Gas Than Almost Every Country on Earth
Congressman Tom Barrett: ‘Being a socialist should disqualify him for people’s consideration in my district’
Philly serial killer probe could expose larger network behind apparent ‘snuff’ films, expert says
Lawyer says 250-foot Trump arch disrupts historic sightlines cherished by veterans seeking burial at Arlington
Missouri woman federally indicted over chilling death threats sent to Austin Metcalf’s family
Blue States with Powerful Teachers’ Unions Have Far Worse Reading Scores for Students Than Red States with Weak Unions
Republicans fear they have little to offer voters as Congress leaves town
China Throws Its Weight Around in America’s Backyard Over Taiwan Backing
Who is Bert Mizusawa The retired Major General challenging Sen. Mark Warner
A swath of past anti-Trump characters have lost Democratic primary bids
Who is Dario Amodei, the Anthropic CEO pushing independent AI oversight?
Dem’s data center attack in critical Senate race hits snag when money trail surfaces: ‘Jekyll-and-Hyde’
Kirk family has powerful evidence — but Utah law could derail wrongful death case: experts
Oil prices crashed more than 30 percent Sunday night after Saudia Arabia on Saturday slashed official crude prices for April following the collapse of talks between OPEC+, which includes the traditional OPEC nations plus Russia. Oil had fallen sharply on Friday following the news that talks had fallen apart but took an even deeper tumble, falling an additional 20 percent or so, when it became apparent that the once allied oil producers were now engaged in a price war to take market share from each other.
Low oil prices were an unambiguous boon to the U.S. economy, boosting consumer buying power and keeping a lid on inflation. But now that the U.S. is once again a major world oil producer, low oil prices can weigh on employment, manufacturing, and the financial stability of heavily-leveraged U.S. drillers. That could even shake some regional banks with large exposures to the drillers.
Story cited here.
