CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

US market close: Benchmarks run red on Tuesday

By Joseph Toppe

21:43, 14 December 2021

American dollar bill
The US dollar is worth more than the Canadian loonie - Photo: Shutterstock

The big gauges are down again after Monday’s setback, suffering two consecutive days of losses as Wall Street readies for the US Federal Reserve’s policy meeting tomorrow.

The Dow Jones Industrial Average is down 106.77 points, 0.3%, the S&P 500 is off more than 35 points, or 0.75%, while the Nasdaq Composite dipped over 175 points, or 1.14%.

Halfway through Tuesday’s session, the Dow Jones Industrial Average was around 0.27% lower, the S&P 500 was off near 1.07%, while the Nasdaq Composite was down close to 1.78%.

Federal Reserve meets on Wednesday

On Wednesday, the US Federal Reserve is expected to slow its bond buying programme and raise interest rates in 2022 to cool down record inflation.

The reduction in purchases – a process known as tapering – is already under way after the US Federal Open Market Committee agreed in November to begin paring back its purchases by $15bn (£11.3bn) a month. Its $120bn of purchases would decline to zero by June.

What is your sentiment on US30?

Vote to see Traders sentiment!

Winners and losers: Tech shares drag Nasdaq down

In tech stock, shares of Microsoft are down 3%, helping to pull the tech-heavy Nasdaq lower on Tuesday.

Shares of Adobe sank over 7% after a JP Morgan analyst reduced their ratings on the company, while share of Apple went 0.1% lower despite getting upgraded to Buy from Neutral by the Bank of America.

Shares of Netflix retreated 1.09% and shares of Amazon sank 0.28% lower.

In the automotive industry, shares of Ford reversed 1.7% after news Toyota was investing $35bn into battery powered electric vehicles. Meanwhile, shares of Toyota went up 2.15%.

Shares of Tesla are off around 0.7% after Elon Musk, the electric vehicle maker’s CEO, sold more of his company stock on Monday.


16,303.90 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0258%
Short position overnight fee 0.0039%
Overnight fee time 22:00 (UTC)
Spread 5.0


16,136.60 Price
+0.270% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


36,352.70 Price
+0.210% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2


4,606.70 Price
-0.030% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.7

Also on Tuesday, shares of Pfizer spiked 0.5% after the company announced that preliminary laboratory tests showed evidence their experimental Covid-19 pill for the newly infected could work against Omicron.

In meme stocks, shares of AMC Entertainment are up near 5.6%, while shares for GameStop are up around 7.6%.

Oil: Crude drips lower for the week

Oil futures are down on Tuesday following a report from the International Energy Agency stating it will cut its oil demand outlook for next year by 100,000 barrels a day.

West Texas Intermediate crude for January delivery slipped 0.8% to settle at $70.73 a barrel.

In energy stocks, shares of Chevron are down 0.2%, while shares of Exxon Mobile are up 0.3%.

Gold: Metal retreats from Monday’s gain

Gold futures are down for the first time this week as gold for February delivery dropped 0.9% to settle at $1,772.30 an ounce.

The precious metal started the week rising 0.15% to $1,787.40.

Forex: US buck edges higher on Canadian dollar

On Tuesday, the US dollar equals $0.89 of the euro, $0.76 of the Pound sterling, and $1.29 of the Canadian dollar after converting to $1.28 of the currency yesterday.

The yield on the 10-year Treasury note jumped 1.4 basis points to 1.437%, while the ICE US Dollar Index was up 0.3%.

Read more: US natural gas prices frozen by warm weather 

Markets in this article

Adobe Systems Inc (Extended Hours)
622.54 USD
11.51 +1.890%
AMZN Inc (Extended Hours)
144.92 USD
-2.87 -1.950%

Rate this article

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.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading