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.”
DOJ busts ‘Greggy’s Cult’ child exploitation network that allegedly coerced kids into self-harm
Late Breaking: Trump-Endorsed Van Epps Defeats Anti-Police Democrat in TN House Race
Texas Tech restricts teaching of race and gender, faculty could be disciplined for violating rule
DOJ sues six states for refusing to turn over voter registration rolls, warns ‘open defiance’ of federal law
DOJ weighing possible new indictments for Comey and James: Reports
Trump-backed Republican keeps crucial congressional seat in GOP hands with special election victory
NYC alleged dine-and-dash influencer Pei Chung evicted from luxury apartment as she sits in jail
Illegal immigrant gang member killed police K-9 ‘Spike’ before officers returned fire in California: source
Indiana redistricting bill clears committee, heads to full House for vote
Young progressive beats out establishment candidate in Jersey City mayoral race, echoing Mamdani
GOP Rep. Elise Stefanik Says She Caught Mike Johnson Telling ‘Lies’ and Secretly ‘Siding with Jamie Raskin’
Breaking: Trump Officially Invalidates All Documents Signed by Biden Autopen, Including Pardons – Fauci, Hunter Biden Now Vulnerable
Watch: The Fieriest Trump Comments in History Just Came Out During Cabinet Meeting – POTUS Utterly Scorched Omar and Somalis, Calling Them ‘Garbage’ from ‘Stinking Country’
Pope Leo urges Trump to de-escalate tensions with Venezuela and turn to dialogue
Trump doubles down on voiding Biden autopen actions, including pardons and commutations
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.
DOJ busts ‘Greggy’s Cult’ child exploitation network that allegedly coerced kids into self-harm
Late Breaking: Trump-Endorsed Van Epps Defeats Anti-Police Democrat in TN House Race
Texas Tech restricts teaching of race and gender, faculty could be disciplined for violating rule
DOJ sues six states for refusing to turn over voter registration rolls, warns ‘open defiance’ of federal law
DOJ weighing possible new indictments for Comey and James: Reports
Trump-backed Republican keeps crucial congressional seat in GOP hands with special election victory
NYC alleged dine-and-dash influencer Pei Chung evicted from luxury apartment as she sits in jail
Illegal immigrant gang member killed police K-9 ‘Spike’ before officers returned fire in California: source
Indiana redistricting bill clears committee, heads to full House for vote
Young progressive beats out establishment candidate in Jersey City mayoral race, echoing Mamdani
GOP Rep. Elise Stefanik Says She Caught Mike Johnson Telling ‘Lies’ and Secretly ‘Siding with Jamie Raskin’
Breaking: Trump Officially Invalidates All Documents Signed by Biden Autopen, Including Pardons – Fauci, Hunter Biden Now Vulnerable
Watch: The Fieriest Trump Comments in History Just Came Out During Cabinet Meeting – POTUS Utterly Scorched Omar and Somalis, Calling Them ‘Garbage’ from ‘Stinking Country’
Pope Leo urges Trump to de-escalate tensions with Venezuela and turn to dialogue
Trump doubles down on voiding Biden autopen actions, including pardons and commutations
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.
