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.”
New York woman convicted for throwing dynamite at boyfriend, blowing off his hand as he tried to get rid of it
Obama says motive unclear despite manifesto outlining alleged targets in WHCD shooting
White House Correspondents’ Dinner shooting: Timeline traces how suspect’s alleged cross-country plan unfolded
Wisconsin Dem’s bar laments ‘we almost got free beer day’ for Trump assassination
Full WHCD Shooter Manifesto: He Told Family He Was Willing to Kill ‘Most Everyone’ at Dinner to Get to Trump
The Reasons Why TDS Still Exists Despite Trump’s Historic Wins
Unearthed video reveals Cole Allen as quiet inventor years before alleged bid to assassinate Trump
At Least 4 Christian Farmers Gunned Down in Their Fields by Motorcycle Mounted Islamists in Nigeria
WHCD shooting suspect planned to target Trump officials, manifesto reveals
What to know about Cole Thomas Allen, the Trump dinner shooting suspect
Breaking: WHCD Gunman Manifesto, Social Accounts Found – He Targeted Trump, Was a ‘No Kings’ Rally Attendee
The Good, the Bad, And the Ugly: Inside Swamp’s New Farm Bill
WHCD Gunman Likely Targeted Trump, Trump Admin Officials: Acting AG
Security under scrutiny as WHCD attendees cite inconsistent screening before shooting
National Pizza Chain Sparks Online Fury with Reminder to Tip Their Drivers
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.
New York woman convicted for throwing dynamite at boyfriend, blowing off his hand as he tried to get rid of it
Obama says motive unclear despite manifesto outlining alleged targets in WHCD shooting
White House Correspondents’ Dinner shooting: Timeline traces how suspect’s alleged cross-country plan unfolded
Wisconsin Dem’s bar laments ‘we almost got free beer day’ for Trump assassination
Full WHCD Shooter Manifesto: He Told Family He Was Willing to Kill ‘Most Everyone’ at Dinner to Get to Trump
The Reasons Why TDS Still Exists Despite Trump’s Historic Wins
Unearthed video reveals Cole Allen as quiet inventor years before alleged bid to assassinate Trump
At Least 4 Christian Farmers Gunned Down in Their Fields by Motorcycle Mounted Islamists in Nigeria
WHCD shooting suspect planned to target Trump officials, manifesto reveals
What to know about Cole Thomas Allen, the Trump dinner shooting suspect
Breaking: WHCD Gunman Manifesto, Social Accounts Found – He Targeted Trump, Was a ‘No Kings’ Rally Attendee
The Good, the Bad, And the Ugly: Inside Swamp’s New Farm Bill
WHCD Gunman Likely Targeted Trump, Trump Admin Officials: Acting AG
Security under scrutiny as WHCD attendees cite inconsistent screening before shooting
National Pizza Chain Sparks Online Fury with Reminder to Tip Their Drivers
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.
