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.”
‘Traitor’ Dem senator ripped after one-word reaction appears to cheer on Iran
Hiker identified, popular trail closed after deadly fall at Utah’s Zion National Park
Byron Donalds cracks down on persistent border blind spot leaving US vulnerable to overstays
DOJ Reveals How Biden Weaponized the Government Against Anti-Abortion Activists
Suspect allegedly guns down deputy in ambush during routine call that rocked quiet town, police say
Trump Names New Acting Labor Secretary as Chavez-DeRemer Resigns
Ex-Trump ally MTG slams both sides of the political aisle: ‘Nothing ever changes’
Dem hopeful who co-founded Joe Rogan’s favorite jeans under fire for ‘Made in America’ claim
What to watch as Virginia voters decide high-stakes redistricting referendum
Trump pleads with Virginians to ‘just vote no’ on redistricting measure in telerally call
Another Democrat exits California’s crowded gubernatorial race weeks before the June 2 primary election
Chinese national arrested at JFK after allegedly photographing US military aircraft at Nebraska base
Louisiana Mass Murderer Who Killed 8 Children Previously Got Probation for Firing Gun Toward a School: Report
Mom, pregnant teen and 12-year-old found bound and murdered as police hunt multiple suspects
Cory Booker Calls for ‘Foot Soldiers’ to Take to the Streets to ‘Stand Up’ Against ‘Darkness’ in Bizarre Rant
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.
‘Traitor’ Dem senator ripped after one-word reaction appears to cheer on Iran
Hiker identified, popular trail closed after deadly fall at Utah’s Zion National Park
Byron Donalds cracks down on persistent border blind spot leaving US vulnerable to overstays
DOJ Reveals How Biden Weaponized the Government Against Anti-Abortion Activists
Suspect allegedly guns down deputy in ambush during routine call that rocked quiet town, police say
Trump Names New Acting Labor Secretary as Chavez-DeRemer Resigns
Ex-Trump ally MTG slams both sides of the political aisle: ‘Nothing ever changes’
Dem hopeful who co-founded Joe Rogan’s favorite jeans under fire for ‘Made in America’ claim
What to watch as Virginia voters decide high-stakes redistricting referendum
Trump pleads with Virginians to ‘just vote no’ on redistricting measure in telerally call
Another Democrat exits California’s crowded gubernatorial race weeks before the June 2 primary election
Chinese national arrested at JFK after allegedly photographing US military aircraft at Nebraska base
Louisiana Mass Murderer Who Killed 8 Children Previously Got Probation for Firing Gun Toward a School: Report
Mom, pregnant teen and 12-year-old found bound and murdered as police hunt multiple suspects
Cory Booker Calls for ‘Foot Soldiers’ to Take to the Streets to ‘Stand Up’ Against ‘Darkness’ in Bizarre Rant
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.
