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.”
AI helps ‘Predator Poachers’ expose elementary school music teacher accused of ‘sexting’ teen
James Comey seeks to dismiss his criminal case, citing ‘vindictive’ prosecution
Fox News Politics Newsletter: Trump blasts Colombia’s Petro after alleged drug strike death
Comey hired possible witness as his lawyer to block testimony, DOJ says
UK Cops Detain Jewish Man for 10 Hours, Saying Star of David Necklace was ‘Antagonistic’ to Nearby Palestinians
Forget ‘Obama Phones’ – Now Illegals Can Get Their Own Newsom Phone Discounts
University fires Turning Point USA table flipper from teaching assistant role after campus outburst
Nick LaLota breaks with Trump over Santos commutation: ‘Three months is not enough’
Trump and Australian prime minister put on united front before president’s meeting with Xi
Former NFL All-Pro Dies at Age 36 After ‘Brief Struggle’ with Police
Trump goes all-out against Colombia’s Petro after claims drug strike killed fisherman: What we know
School Scrambling After Teacher Goes Viral for Mocking Charlie Kirk’s Death at ‘No Kings’ Protest
Colombia recalls US ambassador after Trump calls its leader ‘illegal drug leader,’ threatens military action
Nothing’s working for Democrats as they sink below GOP’s ‘favorability’
Battle for governor in closely watched election may be headed for a photo finish
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.
AI helps ‘Predator Poachers’ expose elementary school music teacher accused of ‘sexting’ teen
James Comey seeks to dismiss his criminal case, citing ‘vindictive’ prosecution
Fox News Politics Newsletter: Trump blasts Colombia’s Petro after alleged drug strike death
Comey hired possible witness as his lawyer to block testimony, DOJ says
UK Cops Detain Jewish Man for 10 Hours, Saying Star of David Necklace was ‘Antagonistic’ to Nearby Palestinians
Forget ‘Obama Phones’ – Now Illegals Can Get Their Own Newsom Phone Discounts
University fires Turning Point USA table flipper from teaching assistant role after campus outburst
Nick LaLota breaks with Trump over Santos commutation: ‘Three months is not enough’
Trump and Australian prime minister put on united front before president’s meeting with Xi
Former NFL All-Pro Dies at Age 36 After ‘Brief Struggle’ with Police
Trump goes all-out against Colombia’s Petro after claims drug strike killed fisherman: What we know
School Scrambling After Teacher Goes Viral for Mocking Charlie Kirk’s Death at ‘No Kings’ Protest
Colombia recalls US ambassador after Trump calls its leader ‘illegal drug leader,’ threatens military action
Nothing’s working for Democrats as they sink below GOP’s ‘favorability’
Battle for governor in closely watched election may be headed for a photo finish
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.
