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 says ‘America needs God’ in Good Friday message touting ‘resurgence of religion’
Watch: DEI-Obsessed Sky News Reporter Claims Moon Landings by ‘All White Men’ Didn’t Represent Humanity
Pro-Lifers Shred Trump Admin’s Biden-Era Title X Extension as ‘Inexplicable Slap in the Face’
Trump Admin Declares War on Microplastics in Drinking Water
Trump Executive Order Aims to Save College Sports, Limit Athlete Transfers
Artemis II astronauts nearly halfway to the moon; NASA shares stunning photos from Orion spacecraft
California 4-year-old boy survives attack by coyote that bit and tried to drag him away
Trump requests over $10 billion for DC infrastructure and National Guard deployment
Colorado lawyers say court e-file system now makes them certify they won’t assist ICE
Patel, McCormick warn foreign terror threats inside US grew during Biden years
Trump gives rare praise to persistent GOP foe after White House ballroom vote
Illegal immigrant accused of murdering wife in Texas just weeks after marriage, ICE fights release
Nebraska Senate candidate restructures campaign after complaint over payments to family: report
Legendary Fleetwood Mac Guitarist Lindsey Buckingham Attacked with ‘Unknown Substance’ in California
‘It’d Be Better Not to Talk About it at All’: Mamdani’s Good Friday Message Draws Backlash from Christians
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 says ‘America needs God’ in Good Friday message touting ‘resurgence of religion’
Watch: DEI-Obsessed Sky News Reporter Claims Moon Landings by ‘All White Men’ Didn’t Represent Humanity
Pro-Lifers Shred Trump Admin’s Biden-Era Title X Extension as ‘Inexplicable Slap in the Face’
Trump Admin Declares War on Microplastics in Drinking Water
Trump Executive Order Aims to Save College Sports, Limit Athlete Transfers
Artemis II astronauts nearly halfway to the moon; NASA shares stunning photos from Orion spacecraft
California 4-year-old boy survives attack by coyote that bit and tried to drag him away
Trump requests over $10 billion for DC infrastructure and National Guard deployment
Colorado lawyers say court e-file system now makes them certify they won’t assist ICE
Patel, McCormick warn foreign terror threats inside US grew during Biden years
Trump gives rare praise to persistent GOP foe after White House ballroom vote
Illegal immigrant accused of murdering wife in Texas just weeks after marriage, ICE fights release
Nebraska Senate candidate restructures campaign after complaint over payments to family: report
Legendary Fleetwood Mac Guitarist Lindsey Buckingham Attacked with ‘Unknown Substance’ in California
‘It’d Be Better Not to Talk About it at All’: Mamdani’s Good Friday Message Draws Backlash from Christians
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.
