While we’ve all been glued to our TV screens watching the aftermath of Superstorm Sandy, a different kind of drama has been unfolding in the stock and futures exchanges in the US. This is the first time the market has had an unplanned closure since September 11th, 2001, although that closure was twice as long (not counting the weekend). However, this is the first time since 1888 that the New York Stock Exchange has been closed for closed for two days in a row due to weather.
But the disruption of trading has also spread beyond New York: futures trading here in Chicago has been interrupted, as the CME has implemented a slew of closures, shortened hours, and altered settlement procedures in response to the storm. US stock index futures and interest rate products were closed in conjunction with New York’s closures yesterday and today. (which seems like it may have been unnecessary… Why can’t they let people hedge their positions via futures while the cash markets remain closed?)
But, with the worst of the storm over (for New York, at least) it appears that it will be back to business tomorrow. So naturally, attention is already turning to where the markets will be when they reopen tomorrow (and how unexpected closures have affected the markets in the past). While it was looking like a weaker open for stock indices initially (SP futures as 2 month lows late last night), after-hours trading is back up and running for the affected futures markets right now, and it’s looking like markets have rallied about 1.2%.
Here’s how those stock index and interest rate (and other) markets have changed since the Friday pre-Sandy close. Pretty much a non-event as far as the markets are concerned:
(Disclaimer: past performance is not necessarily indicative of future results. Percent changes reflect prices as of 5:10 PM CST 10/30/2012.)