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.”
Zach Bryan’s ‘Free Palestine’ Shirt Also Contained a Second Message – It Doesn’t Help His Case
Manning: Let’s Talk About Mamdani Defending Hamas on Oct. 7 and Exactly What They Did to Their Female Victims
DHS proposes massive $70K fee for foreign students seeking work authorization
Anti-Israel groups rally across US on October 7 anniversary, chanting ‘long live the intifada’
Judge weighs bid to dismiss soldier’s case over Polymarket bets tied to Maduro raid
Mom dies shielding baby in horrific 15-story Bronx fall as police hunt suspect: report
Christa Pike’s first words revealed after she unexpectedly woke up while lawyers thought she was ‘brain dead’
Watch: Pastor Fights Back as City Council Begins Meeting with Prayer to Satan
Tim Walz’s Daughter Posts Humiliating Photo of Her Father – Internet Can Only Come Up with One Explanation
Democratic governor nominee Rob Sand bashes Trump over Iowa’s food stamps problems
Unearthed clip exposes how far Talarico was willing to go on raising taxes during COVID era
Amy Klobuchar calls for major anti-terrorism investments after alleged Mall of America plot
Mamdani Releases Statement Remembering Oct. 7, but Spends 75 Percent of His Words Defending Hamas’ Actions
Film Legend, ‘North by Northwest’ Star Eva Marie Saint Has Died
DHS unloads on teachers union boss over ‘dangerous rhetoric’ and anti-ICE activism
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.
Zach Bryan’s ‘Free Palestine’ Shirt Also Contained a Second Message – It Doesn’t Help His Case
Manning: Let’s Talk About Mamdani Defending Hamas on Oct. 7 and Exactly What They Did to Their Female Victims
DHS proposes massive $70K fee for foreign students seeking work authorization
Anti-Israel groups rally across US on October 7 anniversary, chanting ‘long live the intifada’
Judge weighs bid to dismiss soldier’s case over Polymarket bets tied to Maduro raid
Mom dies shielding baby in horrific 15-story Bronx fall as police hunt suspect: report
Christa Pike’s first words revealed after she unexpectedly woke up while lawyers thought she was ‘brain dead’
Watch: Pastor Fights Back as City Council Begins Meeting with Prayer to Satan
Tim Walz’s Daughter Posts Humiliating Photo of Her Father – Internet Can Only Come Up with One Explanation
Democratic governor nominee Rob Sand bashes Trump over Iowa’s food stamps problems
Unearthed clip exposes how far Talarico was willing to go on raising taxes during COVID era
Amy Klobuchar calls for major anti-terrorism investments after alleged Mall of America plot
Mamdani Releases Statement Remembering Oct. 7, but Spends 75 Percent of His Words Defending Hamas’ Actions
Film Legend, ‘North by Northwest’ Star Eva Marie Saint Has Died
DHS unloads on teachers union boss over ‘dangerous rhetoric’ and anti-ICE activism
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.
