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.”
Kennedy Center for Performing Arts Getting Name Change Under Trump’s Leadership
A Year Before His Tragic Death, NASCAR’s Greg Biffle Saved Lives in Flood-Ravaged North Carolina
Trump grants many federal workers unprecedented 5-day holiday break with two extra days off around Christmas
Fox News Poll: Voters say go slow on AI development — but don’t know who should steer
Alan Dershowitz says Constitution unclear about possibility for Trump third term
Disturbing Video: Young Men Make Mistake of Being Jewish on NYC Subway – Are Viciously Attacked, Choked by Multiple Punks
NYC rabbi urges Mayor-elect Mamdani to condemn ‘globalize the intifada’ phrase in wake of Sydney attack
Oversight Democrats release new Epstein photos and accuse DOJ of facilitating ‘White House cover-up’
Trump to hand out $2.6B in ‘warrior dividends’ — and the surprising pot he’s pulling the money from
Tangled in fossil fuel interests, Obama’s energy secretary becomes a critic of Trump’s nuclear agenda
Suspected Brown University gunman identified as investigators explore connection to MIT slaying: sources
Riley Gaines Signs Deal with Fox News to be Part of ‘New Expansion’
Alleged Tren de Aragua leader charged with racketeering conspiracy and cocaine trafficking in Trump crackdown
FBI Busts ‘Shocking’ SNAP Fraud Ring – Entire Stores Were Allegedly Set Up to Operate the Scam
Watch: Kamala Harris Gives Laughable Answer When Asked Why the Biden Admin Didn’t Release the Epstein Files
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.
Kennedy Center for Performing Arts Getting Name Change Under Trump’s Leadership
A Year Before His Tragic Death, NASCAR’s Greg Biffle Saved Lives in Flood-Ravaged North Carolina
Trump grants many federal workers unprecedented 5-day holiday break with two extra days off around Christmas
Fox News Poll: Voters say go slow on AI development — but don’t know who should steer
Alan Dershowitz says Constitution unclear about possibility for Trump third term
Disturbing Video: Young Men Make Mistake of Being Jewish on NYC Subway – Are Viciously Attacked, Choked by Multiple Punks
NYC rabbi urges Mayor-elect Mamdani to condemn ‘globalize the intifada’ phrase in wake of Sydney attack
Oversight Democrats release new Epstein photos and accuse DOJ of facilitating ‘White House cover-up’
Trump to hand out $2.6B in ‘warrior dividends’ — and the surprising pot he’s pulling the money from
Tangled in fossil fuel interests, Obama’s energy secretary becomes a critic of Trump’s nuclear agenda
Suspected Brown University gunman identified as investigators explore connection to MIT slaying: sources
Riley Gaines Signs Deal with Fox News to be Part of ‘New Expansion’
Alleged Tren de Aragua leader charged with racketeering conspiracy and cocaine trafficking in Trump crackdown
FBI Busts ‘Shocking’ SNAP Fraud Ring – Entire Stores Were Allegedly Set Up to Operate the Scam
Watch: Kamala Harris Gives Laughable Answer When Asked Why the Biden Admin Didn’t Release the Epstein Files
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.
