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.”
Senator John Kennedy introduces America to ‘Margaret,’ his elliptical trainer named after Thatcher
Waymo driverless cars overrun Atlanta neighborhood, circling cul-de-sacs and alarming families with kids
Lithuania and Poland forecast ‘military aid’ to help open Strait of Hormuz amid denials of US troop reductions in region
From Revival to Reformation: Why I’m Running for Governor of California
Here’s Where the Redistricting Wars Stand as the 2026 Midterms Approach
Trump Urged to Address Plight of Persecuted Chinese Minorities During Beijing Visit
In the Battle for School Choice, Families Get Stuck in the Middle
Fox News Campus Radicals Newsletter: Detransitioner drama, sex toy giveaways, shocking bathroom find
Colorado governor commutes Tina Peters’ sentence as Trump posts ‘FREE TINA!’
Supreme Court deals blow to Virginia Democrats in fight over state court ruling
Navy veteran Rocky Rochford seeks to turn Tampa Bay red, unseat 20-year House incumbent
Trump Reveals Waterfront Site for Long-Planned National Garden of American Heroes
Minnesota Medicaid operator’s bankruptcy-to-riches rise crashes into fraud probe
Trump hits dramatic milestone in massive departure from Biden border plan: ‘What a difference’
Alex Murdaugh retrial could bring potential death penalty as AG says ‘all our legal options are on the table’
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.
Senator John Kennedy introduces America to ‘Margaret,’ his elliptical trainer named after Thatcher
Waymo driverless cars overrun Atlanta neighborhood, circling cul-de-sacs and alarming families with kids
Lithuania and Poland forecast ‘military aid’ to help open Strait of Hormuz amid denials of US troop reductions in region
From Revival to Reformation: Why I’m Running for Governor of California
Here’s Where the Redistricting Wars Stand as the 2026 Midterms Approach
Trump Urged to Address Plight of Persecuted Chinese Minorities During Beijing Visit
In the Battle for School Choice, Families Get Stuck in the Middle
Fox News Campus Radicals Newsletter: Detransitioner drama, sex toy giveaways, shocking bathroom find
Colorado governor commutes Tina Peters’ sentence as Trump posts ‘FREE TINA!’
Supreme Court deals blow to Virginia Democrats in fight over state court ruling
Navy veteran Rocky Rochford seeks to turn Tampa Bay red, unseat 20-year House incumbent
Trump Reveals Waterfront Site for Long-Planned National Garden of American Heroes
Minnesota Medicaid operator’s bankruptcy-to-riches rise crashes into fraud probe
Trump hits dramatic milestone in massive departure from Biden border plan: ‘What a difference’
Alex Murdaugh retrial could bring potential death penalty as AG says ‘all our legal options are on the table’
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.
