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.”
Alabama governor commutes death sentence as doubts emerge about evidence in murder conviction
University president sounds alarm as nearly half of students justify violence to stop ‘hate speech’
DHS launches nationwide ICE operation targeting illegal immigrants accused of SNAP food stamp fraud
Florida puts 77-year-old man to death for deputy’s murder as state closes in on execution record
Pennsylvania Welfare Supervisor Accused of Stealing Thousands in Food Stamps, Trading Them for Crack Cocaine
Trump Announces New Fraud Bounty Program, Nick Shirley First to Cash In
U2 Singer Bono Attacks Christians and Jews Who Support Ending Government Waste, Shuttering USAID
Husband of Democratic Party Chair Charged with Stealing $20 Million from Federal Education Grants
Honduran illegal immigrant charged with assaulting ICE officers with hammer during New Jersey traffic stop
Woke Hollywood Actor Mark Ruffalo Slams Newsom for Opposing California Billionaire Tax: ‘It’s Disqualifying’
Watch: Abdul El-Sayed Has His Hillary Clinton ‘Hot Sauce in Purse’ Moment in Cringey, Pandering Interview
Democrats Plotting to Use Bitter Ex-Girlfriend to Take Down Elon Musk
Trump Puts His Money Where His Mouth Is, Announces He’s Spending $400 Million on ‘Most Important Midterm Elections’ Ever
Judge Trump called a ‘lunatic’ abruptly backs off demand after showdown with DOJ No. 3
Trump says Ilhan Omar could go to jail or be deported, calls her ‘a disgrace to our country’
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.
Alabama governor commutes death sentence as doubts emerge about evidence in murder conviction
University president sounds alarm as nearly half of students justify violence to stop ‘hate speech’
DHS launches nationwide ICE operation targeting illegal immigrants accused of SNAP food stamp fraud
Florida puts 77-year-old man to death for deputy’s murder as state closes in on execution record
Pennsylvania Welfare Supervisor Accused of Stealing Thousands in Food Stamps, Trading Them for Crack Cocaine
Trump Announces New Fraud Bounty Program, Nick Shirley First to Cash In
U2 Singer Bono Attacks Christians and Jews Who Support Ending Government Waste, Shuttering USAID
Husband of Democratic Party Chair Charged with Stealing $20 Million from Federal Education Grants
Honduran illegal immigrant charged with assaulting ICE officers with hammer during New Jersey traffic stop
Woke Hollywood Actor Mark Ruffalo Slams Newsom for Opposing California Billionaire Tax: ‘It’s Disqualifying’
Watch: Abdul El-Sayed Has His Hillary Clinton ‘Hot Sauce in Purse’ Moment in Cringey, Pandering Interview
Democrats Plotting to Use Bitter Ex-Girlfriend to Take Down Elon Musk
Trump Puts His Money Where His Mouth Is, Announces He’s Spending $400 Million on ‘Most Important Midterm Elections’ Ever
Judge Trump called a ‘lunatic’ abruptly backs off demand after showdown with DOJ No. 3
Trump says Ilhan Omar could go to jail or be deported, calls her ‘a disgrace to our country’
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.
