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.”
Pollster Stands By Rejected Survey Showing Struggling Democrat in Single Digits That He Released Anyway
Doctor Pushing Puberty Blockers on Teen Boy Was Charged With Possessing Child Porn
The Swamp’s Got Another Bright Idea, and It Could End Up Hosing Every American Who Drives
SCOTUS Showdown Over Gun Suppressors Looms After Appeals Court Creates ‘Circuit Split’
What to know about the July Fourth celebrations in DC
WATCH: Biden appears confused about where to exit stage after Democratic gala remarks
It’s Happening: CA Revival Extends for Weeks, ‘Greatest Nights’ in Over 50 Years of Evangelist’s Crusades
Parents Sue Snapchat Alleging Its Responsibility For 12-Year-Old’s Rape
Young Americans break sharply from older Americans on China threat, new poll finds
SNAP food stamp fraud has nefarious terrorism links, top Agriculture watchdog warns Congress
Frustrated blue-collar union bosses rip socialist politicians, warn of labor exodus from Dem party
Polygamous sect leader convicted on state charges after girls found in unventilated trailer
Englishman Visits America For World Cup, Meets Trump: ‘I Now Understand The American Dream’
Mackenzie Shirilla’s appeal rejected by court after ‘The Crash’ revives ‘Hell on Wheels’ case
Judge Accepts Mother’s Claim COVID Made Her Kill Her Infant Daughter
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.
Pollster Stands By Rejected Survey Showing Struggling Democrat in Single Digits That He Released Anyway
Doctor Pushing Puberty Blockers on Teen Boy Was Charged With Possessing Child Porn
The Swamp’s Got Another Bright Idea, and It Could End Up Hosing Every American Who Drives
SCOTUS Showdown Over Gun Suppressors Looms After Appeals Court Creates ‘Circuit Split’
What to know about the July Fourth celebrations in DC
WATCH: Biden appears confused about where to exit stage after Democratic gala remarks
It’s Happening: CA Revival Extends for Weeks, ‘Greatest Nights’ in Over 50 Years of Evangelist’s Crusades
Parents Sue Snapchat Alleging Its Responsibility For 12-Year-Old’s Rape
Young Americans break sharply from older Americans on China threat, new poll finds
SNAP food stamp fraud has nefarious terrorism links, top Agriculture watchdog warns Congress
Frustrated blue-collar union bosses rip socialist politicians, warn of labor exodus from Dem party
Polygamous sect leader convicted on state charges after girls found in unventilated trailer
Englishman Visits America For World Cup, Meets Trump: ‘I Now Understand The American Dream’
Mackenzie Shirilla’s appeal rejected by court after ‘The Crash’ revives ‘Hell on Wheels’ case
Judge Accepts Mother’s Claim COVID Made Her Kill Her Infant Daughter
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.
