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.”
Homeland Security official’s killing leaves agency ‘devastated’ as vetting breakdown exposed
Swalwell’s mounting sexual misconduct allegations threaten career beyond politics, experts warn
Trump Admin Moves to Wipe Out the Last Remaining Convictions from January 6, Specifically Regarding Proud Boys and Oath Keepers
2 detained after shooting in New York leaves 15-year-old killed, two others wounded: police
Guards at ‘Alligator Alcatraz’ beat, pepper-sprayed detainees, lawyer says
‘We’re taxing the rich’: NYC Mayor Mamdani touts new $500M-a-year tax on luxury second homes
Navy reservist accused of murdering wife and hiding her body in freezer arrested after international manhunt
Watch: Comedian Dave Chappelle Refuses to Let NPR Reporter Shame Him for Trans Jokes
Sotomayor walks back remarks criticizing Kavanaugh, says comments were ‘inappropriate’
Sheriff sues woman who allegedly made up ICE detention, enjoyed spa day in ‘hoax’ compared to Jussie Smollett
Bessent says Trump tariffs could return by July after Supreme Court setback
Leftist Darlng Hasan Piker Given Chance to Walk Back Hamas Sympathy – Instead, He Says He’d ‘Vote’ for Them
BREAKING: Whistleblower Who Helped Kick off Trump Impeachment Has Been Hit with Criminal Referrals
Democratic secretary of state was ‘prepared’ for FBI raid in Arizona, emails show
Swalwell Scandal Reveals ‘How the Democrat Party Controls Its Members Through Blackmail,’ Stephen Miller Says
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.
Homeland Security official’s killing leaves agency ‘devastated’ as vetting breakdown exposed
Swalwell’s mounting sexual misconduct allegations threaten career beyond politics, experts warn
Trump Admin Moves to Wipe Out the Last Remaining Convictions from January 6, Specifically Regarding Proud Boys and Oath Keepers
2 detained after shooting in New York leaves 15-year-old killed, two others wounded: police
Guards at ‘Alligator Alcatraz’ beat, pepper-sprayed detainees, lawyer says
‘We’re taxing the rich’: NYC Mayor Mamdani touts new $500M-a-year tax on luxury second homes
Navy reservist accused of murdering wife and hiding her body in freezer arrested after international manhunt
Watch: Comedian Dave Chappelle Refuses to Let NPR Reporter Shame Him for Trans Jokes
Sotomayor walks back remarks criticizing Kavanaugh, says comments were ‘inappropriate’
Sheriff sues woman who allegedly made up ICE detention, enjoyed spa day in ‘hoax’ compared to Jussie Smollett
Bessent says Trump tariffs could return by July after Supreme Court setback
Leftist Darlng Hasan Piker Given Chance to Walk Back Hamas Sympathy – Instead, He Says He’d ‘Vote’ for Them
BREAKING: Whistleblower Who Helped Kick off Trump Impeachment Has Been Hit with Criminal Referrals
Democratic secretary of state was ‘prepared’ for FBI raid in Arizona, emails show
Swalwell Scandal Reveals ‘How the Democrat Party Controls Its Members Through Blackmail,’ Stephen Miller Says
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.
