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.”
Disturbing Video: ‘One of the Most Horrific Things I’ve Seen’ – Journalists Disgusted as Illegal Nearly Drowns Toddler in Effort to Cross Border
China Isn’t Waiting for Permits: US Leaders Warn It’s ‘Quicker to Get a College Degree’ Than to Power America
Nonimmigrant visas in flux due to Trump administration fees
The folksy Senate Republican in hot demand on the campaign trail
SCOTUS detention fight could unleash dangerous criminal migrants onto US streets, experts warns
Michigan man doxxed after exposing his city’s booming Islamic surge takes defiant stand: ‘Not gonna stop’
How Ms. Rachel went from beloved children’s streaming sensation to ‘mouthpiece for Hamas’
Nicki Minaj urges young Americans to ‘vote red’ in 2026 midterms while doubling down on Trump support
Florida man, 76, with suspended license allegedly admits to driving under the influence of rum, cocaine
Hiker falls up to 1,000 feet to his death day after another body found on same mountain
Four Americans dead after building collapses near the Acropolis in Athens
So-Called Moderate Governor Candidate Wants More Trans Books in Elementary Schools
Leading Democrat Official Resigns After Probe Uncovers Sexual Harassment of Young Female Staffer
Civilian detained after ‘violently engaging’ security personnel at Florida Air Force base: report
‘Tremendous Heresy’: CS Lewis’ Family Confirms He’d Be ‘Turning Over in His Grave’ Over Netflix’s Aslan Casting
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.
Disturbing Video: ‘One of the Most Horrific Things I’ve Seen’ – Journalists Disgusted as Illegal Nearly Drowns Toddler in Effort to Cross Border
China Isn’t Waiting for Permits: US Leaders Warn It’s ‘Quicker to Get a College Degree’ Than to Power America
Nonimmigrant visas in flux due to Trump administration fees
The folksy Senate Republican in hot demand on the campaign trail
SCOTUS detention fight could unleash dangerous criminal migrants onto US streets, experts warns
Michigan man doxxed after exposing his city’s booming Islamic surge takes defiant stand: ‘Not gonna stop’
How Ms. Rachel went from beloved children’s streaming sensation to ‘mouthpiece for Hamas’
Nicki Minaj urges young Americans to ‘vote red’ in 2026 midterms while doubling down on Trump support
Florida man, 76, with suspended license allegedly admits to driving under the influence of rum, cocaine
Hiker falls up to 1,000 feet to his death day after another body found on same mountain
Four Americans dead after building collapses near the Acropolis in Athens
So-Called Moderate Governor Candidate Wants More Trans Books in Elementary Schools
Leading Democrat Official Resigns After Probe Uncovers Sexual Harassment of Young Female Staffer
Civilian detained after ‘violently engaging’ security personnel at Florida Air Force base: report
‘Tremendous Heresy’: CS Lewis’ Family Confirms He’d Be ‘Turning Over in His Grave’ Over Netflix’s Aslan Casting
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.
