S&P 500 Futures Plunge, Leaving Traders Grasping for Reasons





(Bloomberg) -- U.S. equity futures lurched lower as trading opened on Thursday in Asia, with S&P 500 Index contracts plunging as much as 1.9 percent on heavy volume.

Traders couldn't immediately pinpoint a trigger for a decline of that magnitude, though many cited the arrest of Huawei Technologies Co.'s Chief Financial Officer Wanzhou Meng and its implications for U.S.-China trade relations.

Some market watchers have pointed to a possible fat finger or that trading was distorted by the restart after Wednesday's closure for cash markets and shortened trading in the equity futures market. The selling pressure was so intense that it forced CME Group to pause trading, data indicated.

Futures pared some of the drop by 8:48 a.m. in Singapore, with S&P 500 contracts down 0.7 percent.

"We are closely watching the developments on this morning headlines after reports that Canada has arrested the Huawei CFO facing U.S. extradition for allegedly violating Iran sanctions," said Stephen Innes, head of trading for Asia-Pacific at Oanda Corp. in Singapore.

The plunge was the last thing that investors needed, already skittish after Tuesday's rout and an enforced lull on Wednesday for a day of mourning for former President George H.W. Bush. The S&P 500 plunged 3.2 percent on Tuesday, its biggest slide since the mid-October sell-off, while the Dow Jones Industrial Average sank almost 800 points as a litany of concerns wiped out the rally in risk assets.

"It does seem to be a very nervous market at the moment," said Nick Twidale, chief operating office at Rakuten Securities' Australian unit.

--With assistance from Matt Turner.

To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Sarah Wells

For more articles like this, please visit us at bloomberg.com

©2018 Bloomberg L.P.

COMMENTS

More Related News

Trump Files Notice of Appeal to Ruling on His Financial Records
Trump Files Notice of Appeal to Ruling on His Financial Records

On Monday, U.S. District Judge Amit Mehta ruled that the House Oversight and Reform Committee has authority to examine Trump's personal and business records going back to 2011. The Mazars case is Trump v. Committee on Oversight and Reform, 19-cv-1136, U.S. District Court, District of Columbia (Washington).

Tesla Falls as Analyst Says Company Facing
Tesla Falls as Analyst Says Company Facing 'Code-Red Situation'

In a note Sunday, Wedbush analyst Dan Ives described the electric-car maker's predicament as a "code red situation" and cut his price target on the stock to $230 from $275. Ives slashed his target from $365 just last month. Tesla shares fell as much as 7.5% to $195.25 and were trading at $200.68 as

Tesla Falls as Analyst Says Its Profit Goal Is a
Tesla Falls as Analyst Says Its Profit Goal Is a 'Kilimanjaro-Like' Climb

In a note Sunday, Wedbush analyst Dan Ives described the electric-car maker's predicament as a "code-red situation" and cut his price target on the stock to $230 from $275. Ives slashed his target from $365 just last month. Tesla shares fell 3.8% in early trading in New York Monday, poised to reach

Ahead of Fox News Forum, Buttigieg Critical of Hosts and Trump
Ahead of Fox News Forum, Buttigieg Critical of Hosts and Trump

Buttigieg, the openly gay mayor of South Bend, Indiana, who's risen in polls since a CNN town hall in March gave him national exposure, said he agreed to appear because he wants to reach voters who might not otherwise hear his message. "I'm concerned that we're retreating into media bubbles," Buttigieg told reporters after an event Saturday in Dubuque, Iowa.

Iraq Says Exxon Evacuation of Staff Is `Unacceptable
Iraq Says Exxon Evacuation of Staff Is `Unacceptable'

"This withdrawal may send the wrong message about the situation in Iraq, and that's something we reject," Iraq's Oil Minister Thamir Ghadhban said in a statement on Saturday. The minister sent a letter to Exxon officials seeking clarification about the decision and asking that the workers return to

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.