CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

US market close: Biden’s Omicron plan spurs Tuesday trading

By Joseph Toppe

21:08, 21 December 2021

US president Joe Biden wearing a non-medical mask
US president Joe Biden - Photo: Shutterstock

The major American gauges are up big on Tuesday after President Joe Biden announced new actions to combat rising Omicron cases in the US.

The Dow Jones Industrial Average added 560.54 points, or 1.6%, to 35,492.70, the S&P 500 went up 1.8% to 4,649.23, while the Nasdaq Composite popped 3% to 15,341.09.

The small-cap benchmark Russell 2000 improved 2.4%, notching its best day since July.

Biden steps up fight against Omicron

On Tuesday, President Biden outlined a plan to help protect Americans, communities, and US hospitals fight Omicron this winter.

According to a White House press release, the Biden Administration will begin deploying additional medical personnel, expanding hospital capacities, and providing resources like supplies and free ventilators to states.

The president’s outline includes robust access to free testing through new federal testing sites, the distribution of free, rapid tests to Americans, while also using the Defence Production Act to speed up test manufacturing.

To raise support for local hospitals, the federal government can deploy troops to Covid-burdened facilities and expand hospital capacity by activating Federal Emergency Management Agency response teams.

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Winners and losers: Vaccine stocks dip on Biden’s plan

Shares of Pfizer are 2.25% in the red, shares of Johnson & Johnson are down 0.32%, and shares of Moderna are 2.98% lower.

In the aviation industry, shares of American Airlines are higher by 4.74%, shares of Delta Airlines are up 5.91%, while shares of Southwest Airlines are 3.84% in positive territory and shares of United Airlines are 6.89% better.

AUD/USD

0.65 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0052%
Short position overnight fee -0.0030%
Overnight fee time 22:00 (UTC)
Spread 0.00006

GBP/USD

1.26 Price
-0.130% 1D Chg, %
Long position overnight fee -0.0039%
Short position overnight fee -0.0043%
Overnight fee time 22:00 (UTC)
Spread 0.00013

USD/JPY

154.47 Price
-0.620% 1D Chg, %
Long position overnight fee 0.0083%
Short position overnight fee -0.0165%
Overnight fee time 22:00 (UTC)
Spread 0.010

GBP/JPY

195.22 Price
-0.750% 1D Chg, %
Long position overnight fee 0.0086%
Short position overnight fee -0.0168%
Overnight fee time 22:00 (UTC)
Spread 0.031

The Dow Jones Industrial Average grew on its mid-day lead as blue-chip shares like Boeing went up 5.8% and shares of Nike traded 6.20% higher.

Oil: Crude climbs higher

Oil futures were higher on Tuesday with West Texas Intermediate crude for February delivery spiking $2.51, or 3.7%, to close at $71.12 a barrel on the New York Mercantile Exchange.

February Brent crude, the global benchmark, closed $2.46 higher, up 3.4%, at $73.98 a barrel on ICE Futures Europe.

In energy stock, shares of Exxon Mobil are up 2.25%, while shares of Chevron are 1.60% better.

Gold: Yellow metal runs red

Gold futures are lower after ending yesterday’s session in decline as February gold closed lower by $5.90, or 0.3%, to $1,788.70 an ounce.

Forex: US buck holds firm against yen, euro

On Tuesday, one US dollar equals 1.29 of the Canadian dollar, 114.17 of the Japanese yen, and 0.89 of the euro.

The yield on the benchmark 10-year Treasury note went up to 1.487% Tuesday from 1.418% Monday.

Read more: US oil prices bounce back, but worries over Omicron remain 

Markets in this article

AAL
American Airlines Group Inc (Extended Hours)
14.47 USD
-0.06 -0.420%
AAL
American Airlines Group Inc (Extended Hours)
14.47 USD
-0.06 -0.420%
BA
Boeing Co (Extended Hours)
146.90 USD
0.72 +0.490%
BA
Boeing Co (Extended Hours)
146.90 USD
0.72 +0.490%
CVX
Chevron
161.38 USD
1.71 +1.070%

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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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