This picture depicts the S&P 500 futures market, which is locked limit down. In the futures market, traders bet on the future price of commodities and securities, in this case it is a bet on the future price in the S&P 500. The market is currently locked limit-down, which means that all trading has effectively stopped because the price has dropped too far. Futures trade nearly around the clock, so journalists like to say "futures down, Wall Street headed to lower open," though futures don't always predict the moves in the market correctly.
Other news:
Oil below $64
Korea market down 11%, Nikkei down 10%
US dollar falls to 95.32 yen, lowest in 13 years
Friday, October 24, 2008
FINANCIAL UPDATE, 6:30am EST
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1 comment:
Thanks for this. I had no idea about the futures market and how it worked.
So if the US economy is getting screwed, everyone else is getting screwed faster? The dollar seems to be doing better against the EURO recently than I recall.
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