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.”
Israel issues ‘urgent’ warning to Iranian civilians to ‘refrain’ from train travel
Obama Center takes heat as critics cry foul over ID rules for free entry — while Dems blast voter ID laws
Watch: Hegseth Describes Pilot’s Miraculous Easter Rescue in Terms the Godless Biden Admin Wouldn’t Dare Utter
New poll reveals Spanberger’s popularity is plummeting amid backlash over gerrymandering
Mamdani unveils new ‘racial equity plan’ for more ‘equitable future’ that prompts quick DOJ pushback
Bald-headed killer smiles as prosecutors reveal what she did before dad walked in
Tim Walz-Appointed Judge Throws Out All Charges Against Woman Accused of Interrupting Easter Service
AI-backed super PAC expands into multiple GOP primaries after claiming early wins
Trump roasts Biden over autopen use in viral interaction with kids at White House Easter Egg Roll
Repeat offender with 19 felonies busted after wild caught-on-camera chase: police
Trump Says Media Leak Jeopardized Iran Rescue, Threatens Reporter with Jail
Finally: Thanks to Pete Hegseth, American Servicemen Are No Longer Sitting Ducks on Their Own Bases
Orban accuses Ukraine of terrorist plot against pipeline amid uphill election battle
Megan Rapinoe Back in the Spotlight – And Getting Torched – For Blasting Rule Protecting Women Athletes
Trump claims he’d win as the president of Venezuela — just needs to ‘quickly’ learn Spanish
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.
Israel issues ‘urgent’ warning to Iranian civilians to ‘refrain’ from train travel
Obama Center takes heat as critics cry foul over ID rules for free entry — while Dems blast voter ID laws
Watch: Hegseth Describes Pilot’s Miraculous Easter Rescue in Terms the Godless Biden Admin Wouldn’t Dare Utter
New poll reveals Spanberger’s popularity is plummeting amid backlash over gerrymandering
Mamdani unveils new ‘racial equity plan’ for more ‘equitable future’ that prompts quick DOJ pushback
Bald-headed killer smiles as prosecutors reveal what she did before dad walked in
Tim Walz-Appointed Judge Throws Out All Charges Against Woman Accused of Interrupting Easter Service
AI-backed super PAC expands into multiple GOP primaries after claiming early wins
Trump roasts Biden over autopen use in viral interaction with kids at White House Easter Egg Roll
Repeat offender with 19 felonies busted after wild caught-on-camera chase: police
Trump Says Media Leak Jeopardized Iran Rescue, Threatens Reporter with Jail
Finally: Thanks to Pete Hegseth, American Servicemen Are No Longer Sitting Ducks on Their Own Bases
Orban accuses Ukraine of terrorist plot against pipeline amid uphill election battle
Megan Rapinoe Back in the Spotlight – And Getting Torched – For Blasting Rule Protecting Women Athletes
Trump claims he’d win as the president of Venezuela — just needs to ‘quickly’ learn Spanish
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.
