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 expands Turkey ambassador’s diplomatic role, adding Iraq, Syria amid Middle East tensions
Does China Have The Upper Hand?
NHL Legend Hangs Himself: Report
Graham Platner’s wife campaign video statement responding to infidelity allegations widely panned by critics
Agitators outside Delaney Hall set up organized logistics operation before Newark protests began
Leftists Host Striptease Fundraiser to Support Antifa Terrorists Behind Shooting at ICE Detention Facility in 2025
Arizona school board member gets backlash after mocking board president with Nazi salute
Trump calls on all future candidates to take cognitive exam, noting perfect score during latest physical
Infected Lab Monkey Bites Government Employee in the US, GOP Senator Demands Investigation
FBI hunts most wanted neighbor next door who allegedly faked cancer, scammed loved ones for luxury getaways
E. Jean Carroll is a mess for the administration that won’t go away
Smithsonian Accused of Rewriting Nixon History with False Impeachment Claim
Fact Check: Ken Paxton Absolutely Didn’t Let a Sex Offender Go Free – Here’s What Really Happened
Scary stories to tell seniors
Lithuania warns Russian economy is ‘built on war’ and Baltic states are likely next target
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 expands Turkey ambassador’s diplomatic role, adding Iraq, Syria amid Middle East tensions
Does China Have The Upper Hand?
NHL Legend Hangs Himself: Report
Graham Platner’s wife campaign video statement responding to infidelity allegations widely panned by critics
Agitators outside Delaney Hall set up organized logistics operation before Newark protests began
Leftists Host Striptease Fundraiser to Support Antifa Terrorists Behind Shooting at ICE Detention Facility in 2025
Arizona school board member gets backlash after mocking board president with Nazi salute
Trump calls on all future candidates to take cognitive exam, noting perfect score during latest physical
Infected Lab Monkey Bites Government Employee in the US, GOP Senator Demands Investigation
FBI hunts most wanted neighbor next door who allegedly faked cancer, scammed loved ones for luxury getaways
E. Jean Carroll is a mess for the administration that won’t go away
Smithsonian Accused of Rewriting Nixon History with False Impeachment Claim
Fact Check: Ken Paxton Absolutely Didn’t Let a Sex Offender Go Free – Here’s What Really Happened
Scary stories to tell seniors
Lithuania warns Russian economy is ‘built on war’ and Baltic states are likely next target
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.
