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.”
Democrats’ bitter civil war hits Michigan, but biggest prize still up for grabs
Trump warns Iran will be hit ‘really hard’ if nuclear negotiations collapse again
Socialist tenant organizer who blasted ‘sell-out Democrats’ loses Midwest primary
Dems rally behind Michigan prosecutor to champion party in crucial House race
Trump-backed candidate lands GOP nod, setting up high-stakes governor showdown
Big money propels Dem megachurch pastor to victory in longshot Kansas Senate bid
Mom of 4 recovering after suspected spider bite leads to severe complications: reports
Meet the Democrats hoping to flip Virginia’s most competitive House seats in November
Police hunt teen accused of killing Citadel cadet and childhood friend, warn of ‘armed and dangerous’ suspect
Another Grocery Chain Answers Trump’s Call, Cuts Prices on Over 300 Items to Help Americans Still Suffering from Bidenflation
Watch This Rising Dem Star Collapse When Asked if She’s Pro-Thanksgiving – Her Answer Makes Kamala Look Like a Genius
Virginia voters cement swing-district rematch after Dems’ redistricting fail
Virginia Senate race to battle top intel Dem takes shape after redistricting delays
‘Largest Denaturalization Surge in Recorded History’ Underway as Trump Admin Begins Booting Criminal Citizens
Video: Cory Booker Has Extended Meltdown in Committee Hearing as Blanche Nomination Advances
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.
Democrats’ bitter civil war hits Michigan, but biggest prize still up for grabs
Trump warns Iran will be hit ‘really hard’ if nuclear negotiations collapse again
Socialist tenant organizer who blasted ‘sell-out Democrats’ loses Midwest primary
Dems rally behind Michigan prosecutor to champion party in crucial House race
Trump-backed candidate lands GOP nod, setting up high-stakes governor showdown
Big money propels Dem megachurch pastor to victory in longshot Kansas Senate bid
Mom of 4 recovering after suspected spider bite leads to severe complications: reports
Meet the Democrats hoping to flip Virginia’s most competitive House seats in November
Police hunt teen accused of killing Citadel cadet and childhood friend, warn of ‘armed and dangerous’ suspect
Another Grocery Chain Answers Trump’s Call, Cuts Prices on Over 300 Items to Help Americans Still Suffering from Bidenflation
Watch This Rising Dem Star Collapse When Asked if She’s Pro-Thanksgiving – Her Answer Makes Kamala Look Like a Genius
Virginia voters cement swing-district rematch after Dems’ redistricting fail
Virginia Senate race to battle top intel Dem takes shape after redistricting delays
‘Largest Denaturalization Surge in Recorded History’ Underway as Trump Admin Begins Booting Criminal Citizens
Video: Cory Booker Has Extended Meltdown in Committee Hearing as Blanche Nomination Advances
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.
