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.”
Pure Evil: Missouri Mother Pleads Out After Baking Tiny Baby to Death in Oven – Her Sentence Proves Society Has Lost Its Way
Illegal alien allegedly grabs school police officer’s gun, shoots him in femoral artery: DOJ
Previously Deported Illegal Alien Charged with Horrific Crimes Against Louisiana Child
One of the Left’s Favorite Podcasters Calls Christian Conservatives a ‘Cancer’ to America
Michigan student confronts El-Sayed over Iran stance in tense exchange: ‘Do you stand with us?’
NYC kitten rescue defends ‘NO F—ING MAGA’ adoption policy as PETA calls for it to be abolished
Soft-on-Crime DA Called ‘Bloody Mary’ Caught Trying to Toss Child-Killer’s Life Sentence Because It’s Just Not Fair
Tylenol murders mystery deepens after sheriff’s office solves decades-old ‘Unknown Wanderer’ cold case
Woke Liberal Busted Pretending to Be Palestinian Apologizes: ‘I Am a White Woman of Significant Privilege’
Local Virginia GOP chair says Arlington County officials prioritize illegal immigrants over public safety
PHOTOS: Trump rolls out the red carpet and a B-1 flyover for Xi’s arrival
Trans Cop Charged with Raping Girl, 14, Possessing Images of Violent Sex Abuse of Children and Animals
Judge questions whether national security concerns could ever justify Trump’s press ban
Hawley zeroes in on Lia Thomas locker room controversy: ‘Did they consent?’
Inside GOP Senate hopeful’s financial ties to controversial data center boom
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.
Pure Evil: Missouri Mother Pleads Out After Baking Tiny Baby to Death in Oven – Her Sentence Proves Society Has Lost Its Way
Illegal alien allegedly grabs school police officer’s gun, shoots him in femoral artery: DOJ
Previously Deported Illegal Alien Charged with Horrific Crimes Against Louisiana Child
One of the Left’s Favorite Podcasters Calls Christian Conservatives a ‘Cancer’ to America
Michigan student confronts El-Sayed over Iran stance in tense exchange: ‘Do you stand with us?’
NYC kitten rescue defends ‘NO F—ING MAGA’ adoption policy as PETA calls for it to be abolished
Soft-on-Crime DA Called ‘Bloody Mary’ Caught Trying to Toss Child-Killer’s Life Sentence Because It’s Just Not Fair
Tylenol murders mystery deepens after sheriff’s office solves decades-old ‘Unknown Wanderer’ cold case
Woke Liberal Busted Pretending to Be Palestinian Apologizes: ‘I Am a White Woman of Significant Privilege’
Local Virginia GOP chair says Arlington County officials prioritize illegal immigrants over public safety
PHOTOS: Trump rolls out the red carpet and a B-1 flyover for Xi’s arrival
Trans Cop Charged with Raping Girl, 14, Possessing Images of Violent Sex Abuse of Children and Animals
Judge questions whether national security concerns could ever justify Trump’s press ban
Hawley zeroes in on Lia Thomas locker room controversy: ‘Did they consent?’
Inside GOP Senate hopeful’s financial ties to controversial data center boom
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.
