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US market close: Dow gains as market U-turns on Fed decision

By Joseph Toppe

21:43, 15 December 2021

US Dollar
The US Federal Reserve is eyeing an interest rate hike - Photo: Shutterstock

The big US gauges rebounded on the second half of Wednesday after the US Federal Reserve announced it is doubling its “tapering” pace to $30bn a month.

The Dow Jones Industrial Average went up 382 points, the S&P 500 went up 1.6%, while the tech-heavy Nasdaq Composite spiked over 2%.

All three major benchmarks were previously on pace for a losing week.

Halfway through the session, the Dow Jones Industrial Average was down 121 points, or 0.3%, the S&P 500 was around 0.3% lower, while the Nasdaq Composite lost almost 0.7%.

Fed ‘tapering’ speeds up

On Wednesday, the US Federal Reserve said it will accelerate the drawdown of its pandemic-spurred market intervention while eyeing an interest rate hike in the near future.

In an interview with, Clemson University economist Bruce Yandle said the Fed’s plans will reduce monthly net purchases of federal and agencies securities by $30bn, while maintaining a low overnight interest rate to keep the 2% inflation target.

“The net reduction does constitute mild tapering, starting now,” he continued. “Accompanying Fed economic projections indicate an expectation of 2.2% to 3% inflation for 2022, which is overly optimistic.”

“I believe it will take larger cuts in money growth and higher interest rates to achieve the projected 2022 inflation numbers.”

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Winners and losers: Tech stocks rally late

After beginning the day in declines, tech stocks rebounded before the closing bell.

Shares of Microsoft are up 1.95%, shares of Adobe are 2.52% higher, while shares of Apple surged 2.85% and shares of Meta Platforms increased by 2.37%.

In other tech stock, shares of Alphabet are 1.76% in the green and shares of Amazon went up 2.5%.


15,935.10 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


16,245.80 Price
+0.370% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 8.0


17,042.90 Price
+0.250% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0044%
Overnight fee time 22:00 (UTC)
Spread 30.0


4,566.20 Price
+0.290% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.8

In the banking industry, shares of Bank of America slipped 0.41% while shares of JPMorgan sank 0.74%.

In meme stocks, shares of AMC Entertainment and GameStop are up 0.65% and 0.61% respectively.

Oil: Crude gains on Fed announcement

Oil futures are higher on Wednesday.

West Texas Intermediate crude delivery went 0.2% higher to settle at $70.87 a barrel.

Prices were down yesterday 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.

Despite the spike in crude prices, energy stocks are lower on Wednesday as shares of Occidental Petroleum are down 0.77% and shares of Exxon Mobil are off by 0.44%.

Gold: Yellow metal stays down

Gold futures are still low halfway through the week. On Wednesday, futures for February delivery went down 0.4% to settle at $1,764.50 an ounce.

The metal was in the red for the first time on Tuesday as gold for February delivery dropped 0.9% to settle at $1,772.30 an ounce.

Forex: Yields mix as US dollar holds

On Wednesday, one US dollar equals 0.76 of the pound sterling, 0.89 of the euro, and 1.29 of the Canadian dollar, holding onto a slight edge from earlier in the week.

The yield on the 10-year Treasury note improved 2.3 basis points to 1.464%, while the ICE US Dollar Index dipped 0.2%.

Read more: Markets jolted by US Federal Reserve announcement 

Markets in this article

Adobe Systems Inc (Extended Hours)
612.55 USD
-9.65 -1.560%
Alphabet Inc - A (Extended Hours)
132.97 USD
-2.51 -1.860%
AMZN Inc (Extended Hours)
146.04 USD
-0.45 -0.310%

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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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