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.”
El Sayed mocks Rogers’s ‘earpiece’ and Trump’s ‘a**’ remarks in Grand Rapids rally
Sanders calls Michigan Senate race a test of Trump, accuses president of using racism to divide voters
Bruce Blakeman calls Kathy Hochul Zohran Mamdani’s ‘puppet’ during New York campaign rally
College homecoming party turns to chaos as deck collapses, leaving at least 28 people injured
Ninth Circuit questions Trump DOJ’s emergency request to set aside 20,000 California mail ballots
Stolen car slams into South Carolina home as teens bolt, authorities say
Woman busted in NYC rabbi syringe attack allegedly stabbed another Jewish man hours earlier: report
Ilhan Omar Accused of Leaking Info to Foreign Leaders in Somalia as Resurfaced Post Brings Evidence to Light
Airbnb Cracks Down on Hosts Treating Guests Like a Free Maid Service
How Is This Legal? Pollster Boosting Dem in Mississippi Admits It Fabricated Most Election Surveys
MAPPED: The states Trump and top Democrats are targeting before Election Day
Young Voters Who Helped Hand Trump White House Are Flocking Back to Dems for the Midterms: Poll
‘Pay the Community’: Trump Pushes Builders to Give Local Americans Extra Payday to Put Up with Unpopular Data Centers
5 victims released from hospital after Florida A&M University shooting, 1 remains critical
‘Nothing Compared to What Is Coming’: Bukele Issues Stark Warning to Haitian Gangs
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.
El Sayed mocks Rogers’s ‘earpiece’ and Trump’s ‘a**’ remarks in Grand Rapids rally
Sanders calls Michigan Senate race a test of Trump, accuses president of using racism to divide voters
Bruce Blakeman calls Kathy Hochul Zohran Mamdani’s ‘puppet’ during New York campaign rally
College homecoming party turns to chaos as deck collapses, leaving at least 28 people injured
Ninth Circuit questions Trump DOJ’s emergency request to set aside 20,000 California mail ballots
Stolen car slams into South Carolina home as teens bolt, authorities say
Woman busted in NYC rabbi syringe attack allegedly stabbed another Jewish man hours earlier: report
Ilhan Omar Accused of Leaking Info to Foreign Leaders in Somalia as Resurfaced Post Brings Evidence to Light
Airbnb Cracks Down on Hosts Treating Guests Like a Free Maid Service
How Is This Legal? Pollster Boosting Dem in Mississippi Admits It Fabricated Most Election Surveys
MAPPED: The states Trump and top Democrats are targeting before Election Day
Young Voters Who Helped Hand Trump White House Are Flocking Back to Dems for the Midterms: Poll
‘Pay the Community’: Trump Pushes Builders to Give Local Americans Extra Payday to Put Up with Unpopular Data Centers
5 victims released from hospital after Florida A&M University shooting, 1 remains critical
‘Nothing Compared to What Is Coming’: Bukele Issues Stark Warning to Haitian Gangs
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.
