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.”
Hegseth Takes House Dem to the Woodshed for Pushing Iranian ‘Propaganda’ at Hearing: ‘Shame on You!’
Minnesota ‘tried to cover up fraud allegations,’ former state trooper alleges
Class and Decency: Watch Johnny Carson Address Reagan Assassination Attempt the Day After It Happened
Bodycam shows dad bolt from cops with young child in his arms before ditching her alone in the woods
Trump DOJ report lays bare Biden administration’s alleged anti-Christian bias
WATCH: Chaos erupts as Florida Dem in pink jumpsuit grabs bullhorn mid-vote: ‘It’s illegal!’
Dem Rep Who Resigned in Disgrace Over Federal Charges Quietly Made Move to Run Again Before Quitting: Reports
David Allan Coe, Outlaw Country Legend Behind ‘Take This Job and Shove It,’ Dies at 86
Biden IRS discriminated against Christian groups, DOJ report finds
Federal appeals court refuses to rehear Trump appeal of $83M E Jean Carroll defamation judgment
Hunter Biden’s ex-lawyer ordered to pay $50K to former Trump aide after harassment claims crumble
Graham urges Trump to ‘ignore’ war powers deadline as GOP grapples with Iran
Cultural groups ask federal judge to halt Trump’s renovations of Kennedy Center
Georgia man says he suffered severe medical neglect leading to amputations at scrutinized Atlanta jail
LAPD chief warns Los Angeles not prepared to secure 2028 Olympics due to staffing shortages
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.
Hegseth Takes House Dem to the Woodshed for Pushing Iranian ‘Propaganda’ at Hearing: ‘Shame on You!’
Minnesota ‘tried to cover up fraud allegations,’ former state trooper alleges
Class and Decency: Watch Johnny Carson Address Reagan Assassination Attempt the Day After It Happened
Bodycam shows dad bolt from cops with young child in his arms before ditching her alone in the woods
Trump DOJ report lays bare Biden administration’s alleged anti-Christian bias
WATCH: Chaos erupts as Florida Dem in pink jumpsuit grabs bullhorn mid-vote: ‘It’s illegal!’
Dem Rep Who Resigned in Disgrace Over Federal Charges Quietly Made Move to Run Again Before Quitting: Reports
David Allan Coe, Outlaw Country Legend Behind ‘Take This Job and Shove It,’ Dies at 86
Biden IRS discriminated against Christian groups, DOJ report finds
Federal appeals court refuses to rehear Trump appeal of $83M E Jean Carroll defamation judgment
Hunter Biden’s ex-lawyer ordered to pay $50K to former Trump aide after harassment claims crumble
Graham urges Trump to ‘ignore’ war powers deadline as GOP grapples with Iran
Cultural groups ask federal judge to halt Trump’s renovations of Kennedy Center
Georgia man says he suffered severe medical neglect leading to amputations at scrutinized Atlanta jail
LAPD chief warns Los Angeles not prepared to secure 2028 Olympics due to staffing shortages
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.
