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.”
‘Brutally Painful’ – Jordan Peterson’s Real Condition Revealed by Wife – They Need Our Prayers
Murkowski vs Trump: Senator sides with Democrats on Iran after series of breaks with president
Bishop Barron slams ‘borderline communists’ Sanders, Mamdani ahead of Trump prayer event: ‘Economy that kills’
Trump DHS Announces 12 Straight Months of Zero Border Releases as Crossings Hit Historic Lows
Coast Guard releases new photos of sailboat seized in missing American’s Bahamas disappearance case
Auburn grad who just landed dream job allegedly shot and killed by boyfriend’s father in Alabama
Hero Principal Gives Credit Where It’s Due: ‘I Think God’s Hand Was on All of Us’
Airlines Seek Federal Bailouts Following Spirit Airlines Shutdown as Fuel Prices Rise
Key China-Iran infrastructure exposes critical hole in Trump’s war strategy
Xi gifts Trump Chinese rose seeds, on top of new ammo for White House ballroom
Are Marco Rubio’s 2028 presidential prospects on the rise?
Adverse court rulings slow, and may stop, House Democrats’ march to the majority
Trump wraps widely-watched trip to China, departing on Air Force One after high-stakes Xi meeting
Ugandan Evangelist Killed by Suspected Muslims After Sharing the Gospel
Israel, Jews targeted worldwide as well-funded leftist, Islamist groups join for ‘Nakba 78’ protests
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.
‘Brutally Painful’ – Jordan Peterson’s Real Condition Revealed by Wife – They Need Our Prayers
Murkowski vs Trump: Senator sides with Democrats on Iran after series of breaks with president
Bishop Barron slams ‘borderline communists’ Sanders, Mamdani ahead of Trump prayer event: ‘Economy that kills’
Trump DHS Announces 12 Straight Months of Zero Border Releases as Crossings Hit Historic Lows
Coast Guard releases new photos of sailboat seized in missing American’s Bahamas disappearance case
Auburn grad who just landed dream job allegedly shot and killed by boyfriend’s father in Alabama
Hero Principal Gives Credit Where It’s Due: ‘I Think God’s Hand Was on All of Us’
Airlines Seek Federal Bailouts Following Spirit Airlines Shutdown as Fuel Prices Rise
Key China-Iran infrastructure exposes critical hole in Trump’s war strategy
Xi gifts Trump Chinese rose seeds, on top of new ammo for White House ballroom
Are Marco Rubio’s 2028 presidential prospects on the rise?
Adverse court rulings slow, and may stop, House Democrats’ march to the majority
Trump wraps widely-watched trip to China, departing on Air Force One after high-stakes Xi meeting
Ugandan Evangelist Killed by Suspected Muslims After Sharing the Gospel
Israel, Jews targeted worldwide as well-funded leftist, Islamist groups join for ‘Nakba 78’ protests
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.
