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.”
Conservative House Republicans Threaten to Sink Biden, McCarthy Deal: ‘We’re Going to Try’
As BLM Collapses, What Could Be Left Standing Will Make the Scam Clear to Everyone
Ron DeSantis scorches ‘delusional’ Trump over Florida crime claims: ‘He’s been attacking me by moving left’
Jeffries shuts down McCarthy claim that Dems are ‘upset’ over debt deal: ‘Have not been able to review’
‘The choice lies with the parent’: Texas dad supports regulating book content in libraries to ‘protect kids’
Biden, McCarthy Come to Initial Debt Ceiling Agreement – Here’s What’s in the Deal
Target Pulls ‘Satanic’ Merch Off Shelves, Here’s Why the Creator Says He’s Glad It’s Gone
Gavin Newsom’s ambitious climate plans face Democratic roadblock
Speaker McCarthy defends budget compromise as conservatives balk: ‘A step in the right direction’
Steelers QB Has SUV Stolen During Interview, Then Realizes Important Item He Left Inside It
GOP Governor Cozies Up with ‘The View,’ Claims Trump Will Not Win Nomination in 2024
NY homeowner accused of fatally shooting woman who pulled into wrong driveway blamed ‘hunters’: court docs
New Mexico State Police investigating shooting in Red River
Bible Passage Hidden for 1,500 Years Found With New Tech – Huge Proof It Really Is God’s Word
Biden and McCarthy speak by phone after Speaker cites ‘progress’ in talks
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.
Conservative House Republicans Threaten to Sink Biden, McCarthy Deal: ‘We’re Going to Try’
As BLM Collapses, What Could Be Left Standing Will Make the Scam Clear to Everyone
Ron DeSantis scorches ‘delusional’ Trump over Florida crime claims: ‘He’s been attacking me by moving left’
Jeffries shuts down McCarthy claim that Dems are ‘upset’ over debt deal: ‘Have not been able to review’
‘The choice lies with the parent’: Texas dad supports regulating book content in libraries to ‘protect kids’
Biden, McCarthy Come to Initial Debt Ceiling Agreement – Here’s What’s in the Deal
Target Pulls ‘Satanic’ Merch Off Shelves, Here’s Why the Creator Says He’s Glad It’s Gone
Gavin Newsom’s ambitious climate plans face Democratic roadblock
Speaker McCarthy defends budget compromise as conservatives balk: ‘A step in the right direction’
Steelers QB Has SUV Stolen During Interview, Then Realizes Important Item He Left Inside It
GOP Governor Cozies Up with ‘The View,’ Claims Trump Will Not Win Nomination in 2024
NY homeowner accused of fatally shooting woman who pulled into wrong driveway blamed ‘hunters’: court docs
New Mexico State Police investigating shooting in Red River
Bible Passage Hidden for 1,500 Years Found With New Tech – Huge Proof It Really Is God’s Word
Biden and McCarthy speak by phone after Speaker cites ‘progress’ in talks
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.
Scroll down to leave a comment:
