News Opinons Politics

Oil Crashes, U.S. Stock Futures Tank, Bond Yields Plummet, and Trading Curbs Kick In


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.”


Real Estate CEO In Major Democrat City Says He Can’t Convince Clients to Buy Due to Unmitigated Crime
Italy’s Move to the Right Shakes Europe’s Political Elites as Giorgia Meloni Readies to Govern
AOC Claims People Are Having Fewer Kids Because Of Capitalism
Gran Abuelo In Chile Could Be World’s Oldest Living Tree
CNN to Be Sold to Fox News? That Would Be Hilarious
Pollster: Those Polls Might Be Even Better Than You Think for GOP
Obamas Park in Handicapped Spot For Two Hours While Dining at Trendy Sushi Restaurant in Los Angeles
‘They Will Lose’: Jen Psaki Concedes Democrats Can’t Let Midterms Be About Biden
Biden Makes Securing U.S. Jobs Easier for Border Crossers, Illegal Aliens
Chaos Erupts as Large Group of Juveniles Brazenly Loot and Destroy Wawa Food Market in Philadelphia
Buttigieg Explains To Texans Why They Should Buy Electric Vehicles
Trump Slams Former ‘Great Friend,’ Now ‘Ungrateful’ DeSantis
Videos Show Audience Booing Nancy Pelosi at NYC Music Festival
Watch: Elton John Looks Shocked as Biden Says It’s ‘His Fault That We’re Spending $6B’ on HIV and AIDS
NYC: ‘I Killed Two Police Officers and My Religion Made Me Do It’

See also  Leading Transgender Health Association Seeks to Include ‘Eunuch’ As ‘Gender Identity’

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.


Real Estate CEO In Major Democrat City Says He Can’t Convince Clients to Buy Due to Unmitigated Crime
Italy’s Move to the Right Shakes Europe’s Political Elites as Giorgia Meloni Readies to Govern
AOC Claims People Are Having Fewer Kids Because Of Capitalism
Gran Abuelo In Chile Could Be World’s Oldest Living Tree
CNN to Be Sold to Fox News? That Would Be Hilarious
Pollster: Those Polls Might Be Even Better Than You Think for GOP
Obamas Park in Handicapped Spot For Two Hours While Dining at Trendy Sushi Restaurant in Los Angeles
‘They Will Lose’: Jen Psaki Concedes Democrats Can’t Let Midterms Be About Biden
Biden Makes Securing U.S. Jobs Easier for Border Crossers, Illegal Aliens
Chaos Erupts as Large Group of Juveniles Brazenly Loot and Destroy Wawa Food Market in Philadelphia
Buttigieg Explains To Texans Why They Should Buy Electric Vehicles
Trump Slams Former ‘Great Friend,’ Now ‘Ungrateful’ DeSantis
Videos Show Audience Booing Nancy Pelosi at NYC Music Festival
Watch: Elton John Looks Shocked as Biden Says It’s ‘His Fault That We’re Spending $6B’ on HIV and AIDS
NYC: ‘I Killed Two Police Officers and My Religion Made Me Do It’

See also  Man Who Allegedly Drove Over ‘Republican’ Teen: I Don’t Want To Lose My ‘Job,’ ‘Life,’ ‘House’ Because Of Bond

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.

Share this article:
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter

→ What are your thoughts? ←
Scroll down to leave a comment: