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.”
Warren’s latest ‘kiss of death’ endorsement sparks mockery over disastrous political picks
Illegal immigrant who murdered Michigan woman sues Trump, demands $75M, public apology, US citizenship
Craziest Video You’ll See Today: Trans Adult Jumps Like Toddler After ‘Misgendering,’ Dares Cop to Arrest Him, Then the Fun Starts
Democrats Make Graham Platner Replacement All But Official – Not Everyone Is Pleased
Gunman charged after wounding 9 in Tucson nightlife shooting before cop takes him down
‘Long Island Lolita’ Amy Fisher’s son charged as cops probe possible microwave link in cat’s killing
Timeline: All the incidents where US troops have been killed during the Iran war
Lindsey Graham succession fight upended as Trump’s chosen successor jumps in
Christian Apologist Forced to Move After Muslims Prove His Point
Did JD Vance Tuck a Hidden Reference in His New Son’s Name?
The American dream now comes with a ZIP code: Here’s where starter homes are still within reach
War erupts on far left as DSA endorses challenger against sitting House progressive
Mamdani’s ‘deranged’ Israel take resurfaces as he targets Netanyahu
Houthis declare naval blockade of Saudi Arabia, escalating crisis
Trump shares first picture of JD Vance’s baby boy
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.
Warren’s latest ‘kiss of death’ endorsement sparks mockery over disastrous political picks
Illegal immigrant who murdered Michigan woman sues Trump, demands $75M, public apology, US citizenship
Craziest Video You’ll See Today: Trans Adult Jumps Like Toddler After ‘Misgendering,’ Dares Cop to Arrest Him, Then the Fun Starts
Democrats Make Graham Platner Replacement All But Official – Not Everyone Is Pleased
Gunman charged after wounding 9 in Tucson nightlife shooting before cop takes him down
‘Long Island Lolita’ Amy Fisher’s son charged as cops probe possible microwave link in cat’s killing
Timeline: All the incidents where US troops have been killed during the Iran war
Lindsey Graham succession fight upended as Trump’s chosen successor jumps in
Christian Apologist Forced to Move After Muslims Prove His Point
Did JD Vance Tuck a Hidden Reference in His New Son’s Name?
The American dream now comes with a ZIP code: Here’s where starter homes are still within reach
War erupts on far left as DSA endorses challenger against sitting House progressive
Mamdani’s ‘deranged’ Israel take resurfaces as he targets Netanyahu
Houthis declare naval blockade of Saudi Arabia, escalating crisis
Trump shares first picture of JD Vance’s baby boy
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.
