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.”
Federal judge rules Bill Essayli unlawfully serving as de facto US attorney in California
US military kills five in eastern Pacific strike on suspected drug-trafficking vessel
Florida girlfriend allegedly tracks cheating boyfriend, shoots woman in his car: reports
Halima Salman convicted of receiving ISIS military training in Syria, faces 10 years in prison
Harley-Davidson’s Decade-Long Electric Motorcycle Initiative Has Turned Disastrous
Rock Legend Donnie Iris Dies Less Than Three Weeks After Retiring from Performing
Federal officials identify 400 noncitizens registered to vote in Washington state: ‘Tip of the iceberg’
Cassidy Hutchinson avoids indictment after DOJ effort to charge her over Jan 6 testimony fails: sources
NYC Mocked as Mamdani Builds New ‘Sidewalk Sheds’ That Drain Water Toward Buildings, So Expensive City Refuses to Give Price Tag
Man accused of threatening to hijack United flight says it was a drunken joke
Report Claims Hegseth Has Asked GOP Candidate for Governor to Appoint Him to Senate Seat
After Biden Set Precedent, Trump Is Considering Vast Pardons for Junior Staffers So Dems Can’t Persecute Them Once He’s Gone
JB Pritzker Blames ‘GOP Dysfunction’ for His State’s Problems – Ignores Decades of Dem Trifectas
Rep Tom Tiffany claims Kamala Harris’ visit signals weakness in David Crowley’s Wisconsin campaign
Russian diesel tankers close in on US ports as Trump, Putin deal triggers legal showdown
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.
Federal judge rules Bill Essayli unlawfully serving as de facto US attorney in California
US military kills five in eastern Pacific strike on suspected drug-trafficking vessel
Florida girlfriend allegedly tracks cheating boyfriend, shoots woman in his car: reports
Halima Salman convicted of receiving ISIS military training in Syria, faces 10 years in prison
Harley-Davidson’s Decade-Long Electric Motorcycle Initiative Has Turned Disastrous
Rock Legend Donnie Iris Dies Less Than Three Weeks After Retiring from Performing
Federal officials identify 400 noncitizens registered to vote in Washington state: ‘Tip of the iceberg’
Cassidy Hutchinson avoids indictment after DOJ effort to charge her over Jan 6 testimony fails: sources
NYC Mocked as Mamdani Builds New ‘Sidewalk Sheds’ That Drain Water Toward Buildings, So Expensive City Refuses to Give Price Tag
Man accused of threatening to hijack United flight says it was a drunken joke
Report Claims Hegseth Has Asked GOP Candidate for Governor to Appoint Him to Senate Seat
After Biden Set Precedent, Trump Is Considering Vast Pardons for Junior Staffers So Dems Can’t Persecute Them Once He’s Gone
JB Pritzker Blames ‘GOP Dysfunction’ for His State’s Problems – Ignores Decades of Dem Trifectas
Rep Tom Tiffany claims Kamala Harris’ visit signals weakness in David Crowley’s Wisconsin campaign
Russian diesel tankers close in on US ports as Trump, Putin deal triggers legal showdown
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.
