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.”
NYT columnist thrashed online for suggesting Trump is to blame for alleged Cornell gang rape
Millions saved by blocking dead people payouts as Trump Treasury drops hammer on federal fraud
‘Project 1619’ Marxist Creator’s Full Degeneracy Revealed: Her Sick Response When Daughter Told Her She Wanted to Be the Best
Watch: The Priceless Moment Fetterman Accidentally Declares He’s a Lifelong Republican – So Would He Be a Good One?
Battle over Daylight Saving Time erupts as push to stop changing clocks hits Senate wall
President Trump endorses Wyoming’s secretary of state for US House of Representatives
Roger Marshall wants you to know he’s a real Kansan: Fishing, back roads, and a cabin called home
Rob Wittman’s long Washington run faces a tough test in Virginia
NYPD detective released from hospital after being stabbed multiple times in Bronx
Massachusetts felon pleads guilty after DOJ says he sold Russian plutonium to 67 customers
Nobu chef killed after teen driver crashes into parked car in California
Catfight! Insiders Say ‘The View’ Hosts Ticked at ABC After Whoopi’s Hiatus – ‘Every One of Them Wanted [It]’
Breaking: Televangelist Jim Bakker Dies at 86
Trump signs order waiving off-road rule for red-dyed diesel at Nebraska rally
Dennis Hastert, longest-serving Republican House Speaker and convicted child molester, dies at 84
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.
NYT columnist thrashed online for suggesting Trump is to blame for alleged Cornell gang rape
Millions saved by blocking dead people payouts as Trump Treasury drops hammer on federal fraud
‘Project 1619’ Marxist Creator’s Full Degeneracy Revealed: Her Sick Response When Daughter Told Her She Wanted to Be the Best
Watch: The Priceless Moment Fetterman Accidentally Declares He’s a Lifelong Republican – So Would He Be a Good One?
Battle over Daylight Saving Time erupts as push to stop changing clocks hits Senate wall
President Trump endorses Wyoming’s secretary of state for US House of Representatives
Roger Marshall wants you to know he’s a real Kansan: Fishing, back roads, and a cabin called home
Rob Wittman’s long Washington run faces a tough test in Virginia
NYPD detective released from hospital after being stabbed multiple times in Bronx
Massachusetts felon pleads guilty after DOJ says he sold Russian plutonium to 67 customers
Nobu chef killed after teen driver crashes into parked car in California
Catfight! Insiders Say ‘The View’ Hosts Ticked at ABC After Whoopi’s Hiatus – ‘Every One of Them Wanted [It]’
Breaking: Televangelist Jim Bakker Dies at 86
Trump signs order waiving off-road rule for red-dyed diesel at Nebraska rally
Dennis Hastert, longest-serving Republican House Speaker and convicted child molester, dies at 84
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.
