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.”
Widespread Obamacare Fraud: Phony SSNs Had a 100% Success Rate for Getting Coverage, Investigation Finds
How Is This Not Racist? Ex-MSNBC Host Trashes Minorities for Working with ICE to Catch Criminals
Florida teens in custody after 14-year-old girl found shot to death, burnt: sheriff
Alaska school district erases Veterans Day from official calendar: ‘Absolutely unacceptable’
Tom Homan Nukes Heckler Who Calls Him Traitor: ‘Grow A Backbone, Put a Kevlar Vest and a Gun on’
Public School Students Allowed to Skip Classes in Chicago if They ‘Fear’ ICE
Congress faces holiday crunch as health care fix collides with shrinking calendar
Republicans divided over whether to salvage Obamacare — or replace it — ahead of subsidy deadline
GOP stands firm in ‘blue slip’ battle with Trump despite prosecutor setbacks
Idaho bar owner faces death threats after viral promo offering free beer for assisting ICE
Judge rules evidence linked to James Comey’s ally is off limits to DOJ
EXCLUSIVE: Trump-led Kennedy Center nearly doubles fundraising from Biden era, smashing record with $23M haul
Hegseth hints at major defense spending hike, reveals new details on Trump’s anti-narco-terrorism operations
Hegseth hints major defense spending increase, reveals new details on Trump’s anti-narcoterrorism operations
Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’
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.
Widespread Obamacare Fraud: Phony SSNs Had a 100% Success Rate for Getting Coverage, Investigation Finds
How Is This Not Racist? Ex-MSNBC Host Trashes Minorities for Working with ICE to Catch Criminals
Florida teens in custody after 14-year-old girl found shot to death, burnt: sheriff
Alaska school district erases Veterans Day from official calendar: ‘Absolutely unacceptable’
Tom Homan Nukes Heckler Who Calls Him Traitor: ‘Grow A Backbone, Put a Kevlar Vest and a Gun on’
Public School Students Allowed to Skip Classes in Chicago if They ‘Fear’ ICE
Congress faces holiday crunch as health care fix collides with shrinking calendar
Republicans divided over whether to salvage Obamacare — or replace it — ahead of subsidy deadline
GOP stands firm in ‘blue slip’ battle with Trump despite prosecutor setbacks
Idaho bar owner faces death threats after viral promo offering free beer for assisting ICE
Judge rules evidence linked to James Comey’s ally is off limits to DOJ
EXCLUSIVE: Trump-led Kennedy Center nearly doubles fundraising from Biden era, smashing record with $23M haul
Hegseth hints at major defense spending hike, reveals new details on Trump’s anti-narco-terrorism operations
Hegseth hints major defense spending increase, reveals new details on Trump’s anti-narcoterrorism operations
Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’
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.
