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.”
Multiple Sources Confirm GOP Senator Attempted IVF Expansion During NDAA Talks
Trump Comes Out Against FISA ‘If it Doesn’t Come with the Save America Act,’ Complicating Congressional Showdown
Is AI Making Us Dumb?
Trump admin puts alleged ‘birth tourism’ scheme on notice as expert delivers warning to hospitals
Teen accused of killing stepsister on Carnival cruise ship ordered detained before murder trial
Robert De Niro Says He Can’t Love America While ‘Xenophobic Tyrant’ Trump is President
Breaking: Gavin Newsom and His Wife Are Reportedly Under DOJ Investigation
ESPN’s Stephen A. Smith Calls Trump an ‘Upgrade’ Over Biden – Days After Blaming Him for an NBA Loss
Three more alleged antifa cell members indicted on terrorism charges over Texas ICE attack
ALERT: Massive B-52 Stratofortress Has Crashed at Edwards Air Force Base – Video
Judge dismisses xAI lawsuit accusing OpenAI of stealing trade secrets
Live explosive device found near Homeland Security office in Cleveland, forcing mass evacuations
American hiker vanishes on tropical trek as flash floods, mudslides turn jungle getaway into desperate search
Same-name candidate disqualified from key Senate race over alleged Dem scheme to confuse voters
Mainstream Media Deceptively Twists the Truth About World Cup Star’s Jesus-Honoring Celebration
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.
Multiple Sources Confirm GOP Senator Attempted IVF Expansion During NDAA Talks
Trump Comes Out Against FISA ‘If it Doesn’t Come with the Save America Act,’ Complicating Congressional Showdown
Is AI Making Us Dumb?
Trump admin puts alleged ‘birth tourism’ scheme on notice as expert delivers warning to hospitals
Teen accused of killing stepsister on Carnival cruise ship ordered detained before murder trial
Robert De Niro Says He Can’t Love America While ‘Xenophobic Tyrant’ Trump is President
Breaking: Gavin Newsom and His Wife Are Reportedly Under DOJ Investigation
ESPN’s Stephen A. Smith Calls Trump an ‘Upgrade’ Over Biden – Days After Blaming Him for an NBA Loss
Three more alleged antifa cell members indicted on terrorism charges over Texas ICE attack
ALERT: Massive B-52 Stratofortress Has Crashed at Edwards Air Force Base – Video
Judge dismisses xAI lawsuit accusing OpenAI of stealing trade secrets
Live explosive device found near Homeland Security office in Cleveland, forcing mass evacuations
American hiker vanishes on tropical trek as flash floods, mudslides turn jungle getaway into desperate search
Same-name candidate disqualified from key Senate race over alleged Dem scheme to confuse voters
Mainstream Media Deceptively Twists the Truth About World Cup Star’s Jesus-Honoring Celebration
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.
