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.”
Boasberg blocks subpoenas against Fed Chair Jerome Powell
Hegseth announces Pentagon probe into deadly strike on Iranian school
Poll: Majority of Americans Say Military Action in Iran ‘Necessary and Warranted’
FBI and UFC Team Up for Unprecedented Training Program
Top Iranian officials stroll Tehran streets at rally before midday explosion
Florida Republicans send SAVE Act–style proof-of-citizenship voting bill to DeSantis’ desk
Iran war enters next phase of destroying entire missile supply chain: Hegseth
Democrat Rep Josh Riley blasted as ‘hypocrite’ over ties to energy firm he criticizes on campaign trail
BREAKING: University of Virginia Hit With Bomb Threat Triggering Evacuations
Sheriff warns Nancy Guthrie suspect could ‘absolutely’ strike again, hints at motive
Old Dominion University ROTC cadets disarm ISIS supporter shouting ‘Allahu Akbar’ during shooting: officials
As NYC Considers a $30 Minimum Wage, Business Owners Are Warning About the Consequences
Michigan Synagogue Attack Suspect Identified as Lebanese Immigrant with an Axe to Grind
Hollywood Publication Variety Trashes Stephen Colbert’s Never-Ending, Anti-Trump Farewell Tour: ‘Not Very Good TV’
New Iranian supreme leader ‘likely disfigured,’ Hegseth says
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.
Boasberg blocks subpoenas against Fed Chair Jerome Powell
Hegseth announces Pentagon probe into deadly strike on Iranian school
Poll: Majority of Americans Say Military Action in Iran ‘Necessary and Warranted’
FBI and UFC Team Up for Unprecedented Training Program
Top Iranian officials stroll Tehran streets at rally before midday explosion
Florida Republicans send SAVE Act–style proof-of-citizenship voting bill to DeSantis’ desk
Iran war enters next phase of destroying entire missile supply chain: Hegseth
Democrat Rep Josh Riley blasted as ‘hypocrite’ over ties to energy firm he criticizes on campaign trail
BREAKING: University of Virginia Hit With Bomb Threat Triggering Evacuations
Sheriff warns Nancy Guthrie suspect could ‘absolutely’ strike again, hints at motive
Old Dominion University ROTC cadets disarm ISIS supporter shouting ‘Allahu Akbar’ during shooting: officials
As NYC Considers a $30 Minimum Wage, Business Owners Are Warning About the Consequences
Michigan Synagogue Attack Suspect Identified as Lebanese Immigrant with an Axe to Grind
Hollywood Publication Variety Trashes Stephen Colbert’s Never-Ending, Anti-Trump Farewell Tour: ‘Not Very Good TV’
New Iranian supreme leader ‘likely disfigured,’ Hegseth says
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.
