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.”
House approves MTG-sponsored bill to criminalize gender transition treatment for minors
Trump sends troops $1,776 bonus checks, and Biden coal, in Christmas speech to nation
NY Gov. Hochul to sign bill to legalize physician-assisted suicide: ‘Who am I to deny you?’
US government admits fault in deadly Potomac River collision that killed 67 people in Washington DC
Trump drops receipts on US savings since Biden’s Oval Office exit
Trump touts bringing country back from ‘brink of ruin’
Lethal US strike sinks narco-terrorist vessel along major Pacific drug route, Pentagon confirms
Border Patrol chief, progressive mayor caught on camera in tense street showdown: ‘Excellent day in Evanston’
Federal employees in the hot seat as GOP senator pushes transparency proposal: ‘Historic opportunity’
Dramatic bodycam video captures moment suspected kidnapper is arrested after 40 years on the run
Barack and Michelle Obama Had Plans with the Reiners on the Night of Their Death
Ford Pays a $19.5 Billion Price After Realizing it Fell for Biden’s EV Scam
Jeffrey Epstein accomplice Ghislaine Maxwell moves to vacate conviction, days before deadline to release files
Statue of Little-Known Civil Rights Activist Replaces Robert E. Lee in U.S. Capitol
Breaking: Bongino Stepping Down as Deputy Director of the FBI
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.
House approves MTG-sponsored bill to criminalize gender transition treatment for minors
Trump sends troops $1,776 bonus checks, and Biden coal, in Christmas speech to nation
NY Gov. Hochul to sign bill to legalize physician-assisted suicide: ‘Who am I to deny you?’
US government admits fault in deadly Potomac River collision that killed 67 people in Washington DC
Trump drops receipts on US savings since Biden’s Oval Office exit
Trump touts bringing country back from ‘brink of ruin’
Lethal US strike sinks narco-terrorist vessel along major Pacific drug route, Pentagon confirms
Border Patrol chief, progressive mayor caught on camera in tense street showdown: ‘Excellent day in Evanston’
Federal employees in the hot seat as GOP senator pushes transparency proposal: ‘Historic opportunity’
Dramatic bodycam video captures moment suspected kidnapper is arrested after 40 years on the run
Barack and Michelle Obama Had Plans with the Reiners on the Night of Their Death
Ford Pays a $19.5 Billion Price After Realizing it Fell for Biden’s EV Scam
Jeffrey Epstein accomplice Ghislaine Maxwell moves to vacate conviction, days before deadline to release files
Statue of Little-Known Civil Rights Activist Replaces Robert E. Lee in U.S. Capitol
Breaking: Bongino Stepping Down as Deputy Director of the FBI
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.
