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.”
99,000 arrested at Mexican border in Trump’s first year versus two million in Biden’s year one
Schumer warns of Republican advantage that could change the battle for Senate control
Democrats have ‘dirty hands’ over complaints about Omar raid weeks before election, ex-prosecutor says
Trump announces massive oil, gas and mineral exploration plans in Greenland, touts national security benefits
Trump administration slashes time refugees have to challenge loss of legal status
NYC Mayor Zohran Mamdani says he won’t fire NYPD Commissioner Jessica Tisch despite socialist pressure
Trump signs pardons for Alaska diesel mechanics onstage during rally touting major energy deals
Trump Energy Department issues emergency order to prevent blackouts across 13 states amid unusual October heat
Florida executes inmate who killed cellmate because he wanted death penalty
Great Wolf Lodge horror as mom accused of killing husband and toddler inside hotel room
Campaign Blunder Causes Ad for Key Senate Race to Air in the Wrong State on the Opposite End of the Country
Attorney says fatal Six Flags roller coaster accident could raise broader safety questions as 9 rides close
Breaking: DOJ Subpoenas Ilhan Omar’s Sister, Other Family Over Evidence of Fraudulent Immigration Paperwork
Watch: Indiana Dem Accused of Being Drunk On Air After Eye-Popping Interview Makes Kamala Look Like Stone Sober Genius
Daily Wire Reveals New Movie Featuring Star-Studded Cast, Including Rob Lowe and James Franco
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.
99,000 arrested at Mexican border in Trump’s first year versus two million in Biden’s year one
Schumer warns of Republican advantage that could change the battle for Senate control
Democrats have ‘dirty hands’ over complaints about Omar raid weeks before election, ex-prosecutor says
Trump announces massive oil, gas and mineral exploration plans in Greenland, touts national security benefits
Trump administration slashes time refugees have to challenge loss of legal status
NYC Mayor Zohran Mamdani says he won’t fire NYPD Commissioner Jessica Tisch despite socialist pressure
Trump signs pardons for Alaska diesel mechanics onstage during rally touting major energy deals
Trump Energy Department issues emergency order to prevent blackouts across 13 states amid unusual October heat
Florida executes inmate who killed cellmate because he wanted death penalty
Great Wolf Lodge horror as mom accused of killing husband and toddler inside hotel room
Campaign Blunder Causes Ad for Key Senate Race to Air in the Wrong State on the Opposite End of the Country
Attorney says fatal Six Flags roller coaster accident could raise broader safety questions as 9 rides close
Breaking: DOJ Subpoenas Ilhan Omar’s Sister, Other Family Over Evidence of Fraudulent Immigration Paperwork
Watch: Indiana Dem Accused of Being Drunk On Air After Eye-Popping Interview Makes Kamala Look Like Stone Sober Genius
Daily Wire Reveals New Movie Featuring Star-Studded Cast, Including Rob Lowe and James Franco
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.
