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.”
Gun store owner says FBI asked him to check firearm sales against list of names, pics in Guthrie case
Palestinian activist accused of expressing desire to ‘kill Jews’ wins deportation case
Firebrand conservatives set to duke it out in GOP Texas AG debate
Remembering Rush Limbaugh, Five Years to the Day After His Passing
ALERT: Gunman Arrested at Capitol Today – Carrying Loaded Shotgun, Wearing Tactical Vest
Dem governor’s ‘dangerous’ anti-ICE law ignites backlash after alleged box cutter attack by illegal alien
Keir Starmer announces investigation into Labour smear campaign alleging journalists part of Russian conspiracy
BREAKING: Federal Judge Rules ICE Cannot Re-Detain Kilmar Abrego Garcia
Latina House Republican asks Supreme Court to block Dems’ bid to ‘racially gerrymander’ her out of Congress
Springsteen jabs Trump as ‘wannabe king’ as famed rocker launches concert tour ‘in defense of America’
Cheer mom, daughter dead in apparent murder-suicide after years-long custody fight: docs
Will Conservative Supreme Court Justices Step Down While Trump Can Still Replace Them? Midterm Results Might Force the Issue
Abrego Garcia to remain free from ICE custody as judge OKs travel for Tennessee hearing
Five injured, including firefighter, in church explosion following reported gas leak in upstate New York
Vance and Rubio would give GOP ‘potent one-two punch’ for 2028 ticket: Joe Concha
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.
Gun store owner says FBI asked him to check firearm sales against list of names, pics in Guthrie case
Palestinian activist accused of expressing desire to ‘kill Jews’ wins deportation case
Firebrand conservatives set to duke it out in GOP Texas AG debate
Remembering Rush Limbaugh, Five Years to the Day After His Passing
ALERT: Gunman Arrested at Capitol Today – Carrying Loaded Shotgun, Wearing Tactical Vest
Dem governor’s ‘dangerous’ anti-ICE law ignites backlash after alleged box cutter attack by illegal alien
Keir Starmer announces investigation into Labour smear campaign alleging journalists part of Russian conspiracy
BREAKING: Federal Judge Rules ICE Cannot Re-Detain Kilmar Abrego Garcia
Latina House Republican asks Supreme Court to block Dems’ bid to ‘racially gerrymander’ her out of Congress
Springsteen jabs Trump as ‘wannabe king’ as famed rocker launches concert tour ‘in defense of America’
Cheer mom, daughter dead in apparent murder-suicide after years-long custody fight: docs
Will Conservative Supreme Court Justices Step Down While Trump Can Still Replace Them? Midterm Results Might Force the Issue
Abrego Garcia to remain free from ICE custody as judge OKs travel for Tennessee hearing
Five injured, including firefighter, in church explosion following reported gas leak in upstate New York
Vance and Rubio would give GOP ‘potent one-two punch’ for 2028 ticket: Joe Concha
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.
