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Market close: US shares run red on Black Friday

By Joseph Toppe

18:43, 26 November 2021

There was a lot of sales activity in spite of a shortened day on Wall Street
Dow falls over 900 points as new Covid-19 strain spawns sell-off - Photo: Unsplash

The major US gauges bottomed out on Black Friday as a new Covid-19 variant in South Africa sent the annual shopping day into a sell-off for traders.

The Dow Jones Industrial Average plummeted around 905 points, or 2.5%, to post its worst day of the year, while the S&P 500 went down 2.3% and the Nasdaq Composite was right behind with a 2.2% dip during session trading.

At its session low, the Blue-Chip Dow lost over 1,000 points.

New Covid-19 scare spurs Black Friday sell-off

On 25 November, the National Institute for Communicable Diseases (NICD) in South Africa announced the detection of a new variant of the SARS-COV-2, the virus that is responsible for the pandemic, following genomic sequencing.

The variant is currently labelled as lineage B.1.1.529.

The emergence of this new variant coincides with a sudden increase in cases in the Gauteng province over recent days and accordingly is being closely monitored by the health authorities in South Africa, according to the release.

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Winners and losers: Covid-19 vax shares spike higher, travel shares nosedive

As most US shares began freefalls on Friday, healthcare stock related to the Covid-19 virus went higher.

Shares for Pfizer jumped 5% and shares for Moderna went up 27%.


41,312.65 Price
+3.790% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


2,022.36 Price
-2.230% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.50


15,706.90 Price
-1.880% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


0.62 Price
-1.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Travel stocks are being hit hardest during Friday trading as shares for Carnival and Royal Caribbean are both down over 10%.

Shares for United Airlines are down 13% after being down just 9% halfway through the shortened session, while shares for American Airlines fell 12.5%.

In other travel stocks, shares for Carnival Corp. sank 13.5% while shares for Royal Caribbean went down 11.9%

Oil: Crude is down amid new travel concerns

On Friday, January Brent crude fell $8.50, or 10.3%, to $73.72 a barrel on ICE Futures Europe, while the US benchmark, West Texas Intermediate crude, sank more than 11%.

In other energy stocks, natural-gas futures rose 2.5% at $5.241 per million British thermal units, while December gasoline dropped 11.6% to $2.0497 a gallon, and December heating oil slipped 11.5% to $2.1066 a gallon.

On Friday, December gold futures went up $13.10 to $1,797.40 an ounce.


Read more: Analyst: Sell-off marks tech stock buying opportunity

Markets in this article

Moderna Inc (Extended Hours)
79.06 USD
-0.54 -0.680%
Moderna Inc (Extended Hours)
79.06 USD
-0.54 -0.680%
Pfizer Inc (Extended Hours)
29.63 USD
0.67 +2.330%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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