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.”
Trump used catering truck, Air Force One decoy to evade Iran threat: report
Family Recounts Chilling Meetings with Doctors, Nurses Before Beloved Grandmother Was Euthanized, Allegedly Against Her Will and Theirs
Dem Gov Maura Healey signs sweeping Massachusetts bill allowing abortions up to birth
Mamdani’s luxury-home tax rollout derailed for now as judge delivers win to NYC homeowners over massive list
Geraldo Proves Trump Right, Calls Haiti ‘Hell’ While Whining About Haitians Being Deported Home
Video: Caitlin Clark’s Suspension Reversed After Ref’s Bizarre Technical Overturned – This as Allegations of Open Racism Flare in WNBA
Fauci Admitted 2nd Dose of COVID Vaccine ‘Theoretically Could Be Associated with Miscarriage’ in Newly Released Texts
Rand Paul Finally Gets Inside Fort Knox Vault and Reveals His Findings
Unlicensed NYC boat operator allegedly ignored safety warnings before mother, baby died in capsizing: feds
Top Senate Dem’s new tax idea gets torched as critics warn nearly every American could pay
Major City Routing 911 Calls to AI to Decide Who Gets a Human and Who Doesn’t
Fauci in the hot seat as GOP senator tears into ‘truly sick’ vaccine texts: ‘Tip of the iceberg’
Fauci texts raising theoretical miscarriage concern after COVID vaccine dose spark backlash
State Department Has Revoked Over 175K Visas to Date for Criminals and Others During Trump’s 2nd Term
Graphic: UK Cop Tries to Arrest Man Who Bought Baseball Bat and Carried It Out of Store, Crowd Comes to Man’s Defense Instead of Cop’s
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.
Trump used catering truck, Air Force One decoy to evade Iran threat: report
Family Recounts Chilling Meetings with Doctors, Nurses Before Beloved Grandmother Was Euthanized, Allegedly Against Her Will and Theirs
Dem Gov Maura Healey signs sweeping Massachusetts bill allowing abortions up to birth
Mamdani’s luxury-home tax rollout derailed for now as judge delivers win to NYC homeowners over massive list
Geraldo Proves Trump Right, Calls Haiti ‘Hell’ While Whining About Haitians Being Deported Home
Video: Caitlin Clark’s Suspension Reversed After Ref’s Bizarre Technical Overturned – This as Allegations of Open Racism Flare in WNBA
Fauci Admitted 2nd Dose of COVID Vaccine ‘Theoretically Could Be Associated with Miscarriage’ in Newly Released Texts
Rand Paul Finally Gets Inside Fort Knox Vault and Reveals His Findings
Unlicensed NYC boat operator allegedly ignored safety warnings before mother, baby died in capsizing: feds
Top Senate Dem’s new tax idea gets torched as critics warn nearly every American could pay
Major City Routing 911 Calls to AI to Decide Who Gets a Human and Who Doesn’t
Fauci in the hot seat as GOP senator tears into ‘truly sick’ vaccine texts: ‘Tip of the iceberg’
Fauci texts raising theoretical miscarriage concern after COVID vaccine dose spark backlash
State Department Has Revoked Over 175K Visas to Date for Criminals and Others During Trump’s 2nd Term
Graphic: UK Cop Tries to Arrest Man Who Bought Baseball Bat and Carried It Out of Store, Crowd Comes to Man’s Defense Instead of Cop’s
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.
