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.”
SPLC kept paying Aryan Nations operatives after bragging about bankrupting them
Former Florida Gov. Charlie Crist is running for mayor of St. Pete
AI boom tests GOP’s midterm affordability pitch as price pain spreads
WHCA shooting exposes concerns over succession security, number of ‘celebrity’ Cabinet officials at big events
Congress responds to WHCA attack with five separate bills to build Trump’s ballroom
Jasmine Crockett’s social media posts about WHCD shooting show different tones
Mentalist Oz Pearlman to skip Kimmel appearance after Trump dinner shooting
Wisconsin teacher placed on leave after social media post advocating to ‘make Americans great assassins again’
Mamdani and King Charles to attend 9/11 ceremony in New York City: What to know
After Karoline Leavitt Calls Out Dems for Their Vile Anti-Trump Rhetoric, GOP Brings the Receipts
Newsom’s wife lashes out at Trump after he rips ’60 Minutes’ host: ‘Internalized misogyny’
Mamdani’s education plan’s ‘lack of merit’ could fundamentally change student outcomes: GOP leader warns
‘Hell Week’ in Washington: A look at House Republicans’ current bind, and how we got here
DOJ Moves Against White House Ballroom Lawsuit in Wake of Shooting: ‘Enough Is Enough’
Pastor known for marriage advice arrested at rumored swingers community accused of having multiple wives
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.
SPLC kept paying Aryan Nations operatives after bragging about bankrupting them
Former Florida Gov. Charlie Crist is running for mayor of St. Pete
AI boom tests GOP’s midterm affordability pitch as price pain spreads
WHCA shooting exposes concerns over succession security, number of ‘celebrity’ Cabinet officials at big events
Congress responds to WHCA attack with five separate bills to build Trump’s ballroom
Jasmine Crockett’s social media posts about WHCD shooting show different tones
Mentalist Oz Pearlman to skip Kimmel appearance after Trump dinner shooting
Wisconsin teacher placed on leave after social media post advocating to ‘make Americans great assassins again’
Mamdani and King Charles to attend 9/11 ceremony in New York City: What to know
After Karoline Leavitt Calls Out Dems for Their Vile Anti-Trump Rhetoric, GOP Brings the Receipts
Newsom’s wife lashes out at Trump after he rips ’60 Minutes’ host: ‘Internalized misogyny’
Mamdani’s education plan’s ‘lack of merit’ could fundamentally change student outcomes: GOP leader warns
‘Hell Week’ in Washington: A look at House Republicans’ current bind, and how we got here
DOJ Moves Against White House Ballroom Lawsuit in Wake of Shooting: ‘Enough Is Enough’
Pastor known for marriage advice arrested at rumored swingers community accused of having multiple wives
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.
