After posting strong gains during yesterday’s session, US stocks are up again on Tuesday.
The Dow Jones Industrial Average went up 494 points, or 1.3%, the S&P 500 tacked on 1.9%, just 1% away from its all-time high, while the Nasdaq Composite surged a market leading 2.8%.
Halfway through the session, the Dow Jones Industrial Average was up 569 points, or 1.6%, the S&P 500 was 2.1% higher, and the Nasdaq Composite was up 2.9%.
Winners and losers: Tech shares power Nasdaq’s rise
Oil: Crude reaches highest point in half month
Oil futures are up on Tuesday, hitting their highest peak in two weeks.
West Texas Intermediate crude for January delivery added $2.56, or 3.7%, to settle at $72.05 a barrel on the New York Mercantile Exchange, after a 4.9% pop on Monday.
February Brent crude, the global benchmark, went up $2.36, or 3.2%, to close at $75.44 a barrel on ICE Futures Europe, notching a fourth straight gain.
Gold: Precious metal hits weekly high
Gold futures settled at their highest point in more than week on Tuesday.
February gold improved $5.20, or 0.3%, to settle at $1,784.70 an ounce.
Crypto: Ethereum stays down
After trading mixed on Monday, digital assets are mostly higher on Tuesday.
Forex: US dollar holds position versus Euro
On Tuesday, one US dollar equals 0.89 of the euro after falling to 0.88 last week.
In bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.463% Tuesday from 1.433% Monday.
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.