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 Hampshire suspect who shot officer and triggered massive manhunt killed in police gunfight
Savannah Guthrie’s Easter message reveals anguish as mom missing 63 days
Greene says Trump isn’t Christian in slamming Easter threat to reopen Strait of Hormuz
CNN Analyst Breaks Down the Numbers for Dems, Reveals Their Own Voters Can’t Stand Them
Blue States Scrambling to Circumvent SCOTUS Ruling, Save Censorship of Gender Counseling
Billboard trolling Dale Warner goes viral after his murder conviction in wife Dee’s case
Watch: Inept Texas Judge Blasted After Camera Catches Him Cursing Kind Computer Tech – Now His Nasty Emails Demanding Respect Have Leaked, Too
One of a Kind Video: Kid Rock Uses Apache Hovering Behind His House to Torment Gavin Newsom
America’s Decaying Highways Are About to Get Much Worse Thanks to Key Fund’s Demise
Tax day is next week: Avoid these 5 common mistakes that can cost you money
Thousands of Christian Families Are Facing Eviction in This Muslim Country
Commission Votes to Approve WH Ballroom Despite Official Injunction, Major Pushback
Trump admin urges restoring ballroom construction in emergency motion: ‘Time is of the essence’
Carter: Hospitals Pick Your Pocket, and Washington Lets Them
Philadelphia man stabs Planet Fitness worker after getting banned from gym: police
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 Hampshire suspect who shot officer and triggered massive manhunt killed in police gunfight
Savannah Guthrie’s Easter message reveals anguish as mom missing 63 days
Greene says Trump isn’t Christian in slamming Easter threat to reopen Strait of Hormuz
CNN Analyst Breaks Down the Numbers for Dems, Reveals Their Own Voters Can’t Stand Them
Blue States Scrambling to Circumvent SCOTUS Ruling, Save Censorship of Gender Counseling
Billboard trolling Dale Warner goes viral after his murder conviction in wife Dee’s case
Watch: Inept Texas Judge Blasted After Camera Catches Him Cursing Kind Computer Tech – Now His Nasty Emails Demanding Respect Have Leaked, Too
One of a Kind Video: Kid Rock Uses Apache Hovering Behind His House to Torment Gavin Newsom
America’s Decaying Highways Are About to Get Much Worse Thanks to Key Fund’s Demise
Tax day is next week: Avoid these 5 common mistakes that can cost you money
Thousands of Christian Families Are Facing Eviction in This Muslim Country
Commission Votes to Approve WH Ballroom Despite Official Injunction, Major Pushback
Trump admin urges restoring ballroom construction in emergency motion: ‘Time is of the essence’
Carter: Hospitals Pick Your Pocket, and Washington Lets Them
Philadelphia man stabs Planet Fitness worker after getting banned from gym: police
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.
