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.”
Parents Who Starved Their 75-Day-Old Baby to Death Will Get No Jail Time After Guilty Plea – Guess Who the Judge Is
Fauci’s Fifth fuels vow to haul him into court ‘every day’ despite Biden pardon
‘Like Graham Platner But Worse’: GOP Group Vows $42M Campaign Against Last-Minute Replacement Democrat
Bipartisan pair of senators urge Rubio to release aid to African women, children at risk of Ebola
Florida mail carrier accused of snatching pets on route, trapping 100-plus cats and dogs in ‘hoarding’ house
Savannah Guthrie makes desperate plea six months after mom Nancy went missing: ‘Someone knows something’
Unearthed posts show Heartland Dem candidate rallying in favor of child gender surgery: ‘Radical as it gets’
Democratic Socialists awarded $5.2M in inheritance dispute despite family’s objections
Five Police Officers Arrested and Fired After Abusing Flock Surveillance Cameras
Patient debt adds stress to already tenuous US economy
Fauci repeatedly pressed Pence and Trump aides for more TV appearances as fame exploded, diary shows
Anti-Trump ‘Jeopardy!’ Host Kicks Hornets’ Nest, Triggers Trans Activists with Sarcasm
In Pelosi’s district, a battle over the future of San Francisco Democrats emerges
WATCH: Booker continues to reject SAVE Act despite bombshell NJ voter roll scandal
WATCH: Democrats admit when they’d eliminate the filibuster as SAVE Act fight heats up
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.
Parents Who Starved Their 75-Day-Old Baby to Death Will Get No Jail Time After Guilty Plea – Guess Who the Judge Is
Fauci’s Fifth fuels vow to haul him into court ‘every day’ despite Biden pardon
‘Like Graham Platner But Worse’: GOP Group Vows $42M Campaign Against Last-Minute Replacement Democrat
Bipartisan pair of senators urge Rubio to release aid to African women, children at risk of Ebola
Florida mail carrier accused of snatching pets on route, trapping 100-plus cats and dogs in ‘hoarding’ house
Savannah Guthrie makes desperate plea six months after mom Nancy went missing: ‘Someone knows something’
Unearthed posts show Heartland Dem candidate rallying in favor of child gender surgery: ‘Radical as it gets’
Democratic Socialists awarded $5.2M in inheritance dispute despite family’s objections
Five Police Officers Arrested and Fired After Abusing Flock Surveillance Cameras
Patient debt adds stress to already tenuous US economy
Fauci repeatedly pressed Pence and Trump aides for more TV appearances as fame exploded, diary shows
Anti-Trump ‘Jeopardy!’ Host Kicks Hornets’ Nest, Triggers Trans Activists with Sarcasm
In Pelosi’s district, a battle over the future of San Francisco Democrats emerges
WATCH: Booker continues to reject SAVE Act despite bombshell NJ voter roll scandal
WATCH: Democrats admit when they’d eliminate the filibuster as SAVE Act fight heats up
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.
