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.”
Middle school teacher arrested in alleged prostitution scheme at casino hotel
Stranded hikers cling to steep California mountain ridge as helicopter crew swoops in
Longtime Serbian leader Vucic’s defeat at the hands of student movement leaves Washington in awkward position
Watch: El-Sayed Staffer Lets His True Feelings About Americans and the Muslim Brotherhood Slip in Devastating Undercover Video
DHS suspends visa-free travel program for Chinese nationals amid birth tourism, security concerns
Germans Furious After Audi CEO Teams with Trump to Announce New Georgia Plant
The Hitchhiker’s Guide to why removing Ilhan Omar from Congress could be harder than Trump expects
Billionaire with Epstein ties emerges as top Dem donor bankrolling ads weaponizing disgraced financier’s files
Utterly Incompetent WNBA Faces Potential Championship Game Disaster – Was it Because DEI Staff Failed to Book Stadium?
Powerful: Video Shows Grieving Mom Offer Illegal Alien Trucker Forgiveness Over Son’s Death: ‘I Pray for You’
Have You Seen Him? Police Search for Murderer Who Escaped Tennessee Prison
Breaking: Comey Charged for Reportedly Leaking National Security Secrets in 2016
Not even sky high gas prices or the Iran war will stop Trump supporters voting MAGA
James Comey charged with leaking national defense information
DOJ seeks to prosecute Comey over alleged national defense disclosure
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.
Middle school teacher arrested in alleged prostitution scheme at casino hotel
Stranded hikers cling to steep California mountain ridge as helicopter crew swoops in
Longtime Serbian leader Vucic’s defeat at the hands of student movement leaves Washington in awkward position
Watch: El-Sayed Staffer Lets His True Feelings About Americans and the Muslim Brotherhood Slip in Devastating Undercover Video
DHS suspends visa-free travel program for Chinese nationals amid birth tourism, security concerns
Germans Furious After Audi CEO Teams with Trump to Announce New Georgia Plant
The Hitchhiker’s Guide to why removing Ilhan Omar from Congress could be harder than Trump expects
Billionaire with Epstein ties emerges as top Dem donor bankrolling ads weaponizing disgraced financier’s files
Utterly Incompetent WNBA Faces Potential Championship Game Disaster – Was it Because DEI Staff Failed to Book Stadium?
Powerful: Video Shows Grieving Mom Offer Illegal Alien Trucker Forgiveness Over Son’s Death: ‘I Pray for You’
Have You Seen Him? Police Search for Murderer Who Escaped Tennessee Prison
Breaking: Comey Charged for Reportedly Leaking National Security Secrets in 2016
Not even sky high gas prices or the Iran war will stop Trump supporters voting MAGA
James Comey charged with leaking national defense information
DOJ seeks to prosecute Comey over alleged national defense disclosure
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.
