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.”
Trump-backed incumbent loses primary after super PAC bankrolled by Dems meddled in race
Mamdani repeatedly sidesteps questions on reported plan to revive tax hikes on wealthy New Yorkers
Retired police chief helps subdue passenger after alleged midair outburst over alcohol cutoff
NYC church arson suspect allegedly plotted more attacks, had violent notes like ‘murder them’ and ‘rape him’
It’s Time to Let States Lead on Paid Family Leave
Primary showdown: Polls close in Tennessee as conservative firebrand eyes governor’s office
EXCLUSIVE: Michigan House speaker calls for answers over $300M taxpayer-funded Rx Kids program
Amazon Investigating After Footage of Delivery Driver Refusing to Take ‘Extra Two Steps’ Goes Viral
Senate scrambles for the exit amid outstanding to-do list: ‘Clear as mud’
It’s True Even if It Makes You Wince: The GOP Establishment Is Right About the Filibuster
Police Officer Arrested for Allegedly Abusing Flock Cameras as Part of Personal Vendetta
Death Toll Hits Triple Digits, Thousands of Africans Remain in Spanish City in Aftermath of Invasion
Doctor Charged in Massive Medicare Fraud Scheme That Allegedly ‘Exploited Elderly Patients’ and Taxpayers
Keeping Strait of Hormuz toll-free is paramount concern for international bodies as Iran-Oman negotiations drag
Trump signs executive orders targeting birthright citizenship, birth tourism after Supreme Court setback
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.
Trump-backed incumbent loses primary after super PAC bankrolled by Dems meddled in race
Mamdani repeatedly sidesteps questions on reported plan to revive tax hikes on wealthy New Yorkers
Retired police chief helps subdue passenger after alleged midair outburst over alcohol cutoff
NYC church arson suspect allegedly plotted more attacks, had violent notes like ‘murder them’ and ‘rape him’
It’s Time to Let States Lead on Paid Family Leave
Primary showdown: Polls close in Tennessee as conservative firebrand eyes governor’s office
EXCLUSIVE: Michigan House speaker calls for answers over $300M taxpayer-funded Rx Kids program
Amazon Investigating After Footage of Delivery Driver Refusing to Take ‘Extra Two Steps’ Goes Viral
Senate scrambles for the exit amid outstanding to-do list: ‘Clear as mud’
It’s True Even if It Makes You Wince: The GOP Establishment Is Right About the Filibuster
Police Officer Arrested for Allegedly Abusing Flock Cameras as Part of Personal Vendetta
Death Toll Hits Triple Digits, Thousands of Africans Remain in Spanish City in Aftermath of Invasion
Doctor Charged in Massive Medicare Fraud Scheme That Allegedly ‘Exploited Elderly Patients’ and Taxpayers
Keeping Strait of Hormuz toll-free is paramount concern for international bodies as Iran-Oman negotiations drag
Trump signs executive orders targeting birthright citizenship, birth tourism after Supreme Court setback
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.
