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.”
DHS says 8% of Nicaragua’s entire population illegally entered US under Biden
NORAD scrambles jets to intercept Russian bombers near Alaska
Hollywood Reporter All But Admits Network Hosts Would End All Political Interviews Before Platforming Critics of Democrats
Illinois lieutenant governor seeking US Senate seat releases video of people saying ‘F— Trump’
Hollywood Legend Becomes Latest Billionaire to Flee California
The Golden Girls: US Women Thrive on the Ice at the Winter Olympics
Report: CNN’s Jake Tapper Is Getting Blamed For a New Network Policy, And He’s Not Happy About It
Ex-Victoria’s Secret CEO’s lawyer caught on hot mic jokingly threatening to ‘kill’ him at Epstein deposition
6 mothers who ‘cherished time together’ among victims in avalanche near Lake Tahoe
Woman charged with animal abandonment after leaving dog tied at JetBlue counter at Las Vegas airport
Documents show Epstein received pitch for properties housing Pentagon, FBI tenants after 2008 conviction
Buttigieg, Newsom, AOC top three in new 2028 poll in key presidential primary state
College student dies in tragic ski accident at Wisconsin resort, marking second death within a month
Red state auditor’s report flags Democratic governor’s ‘concerning’ spending on ‘luxury’ expenditures
Trump’s NIH director isn’t the only official wearing multiple hats during the president’s second term
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.
DHS says 8% of Nicaragua’s entire population illegally entered US under Biden
NORAD scrambles jets to intercept Russian bombers near Alaska
Hollywood Reporter All But Admits Network Hosts Would End All Political Interviews Before Platforming Critics of Democrats
Illinois lieutenant governor seeking US Senate seat releases video of people saying ‘F— Trump’
Hollywood Legend Becomes Latest Billionaire to Flee California
The Golden Girls: US Women Thrive on the Ice at the Winter Olympics
Report: CNN’s Jake Tapper Is Getting Blamed For a New Network Policy, And He’s Not Happy About It
Ex-Victoria’s Secret CEO’s lawyer caught on hot mic jokingly threatening to ‘kill’ him at Epstein deposition
6 mothers who ‘cherished time together’ among victims in avalanche near Lake Tahoe
Woman charged with animal abandonment after leaving dog tied at JetBlue counter at Las Vegas airport
Documents show Epstein received pitch for properties housing Pentagon, FBI tenants after 2008 conviction
Buttigieg, Newsom, AOC top three in new 2028 poll in key presidential primary state
College student dies in tragic ski accident at Wisconsin resort, marking second death within a month
Red state auditor’s report flags Democratic governor’s ‘concerning’ spending on ‘luxury’ expenditures
Trump’s NIH director isn’t the only official wearing multiple hats during the president’s second term
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.
