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: Dow soars as S&P falls late

By Joseph Toppe

21:23, 4 January 2022

Dow logo with green upward arrow
The Dow Jones was up around 247 points - Photo: Shutterstock

The blue-chip Dow closed with a milestone after hitting a new daily high earlier in the session.

The Dow Jones Industrial Average went up 214 points, or 0.59%, the S&P 500 closed 0.6% lower after trading green just before the bell, while the Nasdaq Composite fell 1.33%.

Halfway through the session, the Dow was up around 247 points, or 0.6%, to post an intraday record, the S&P 500 also reached its own intraday milestone early, before falling tech shares pulled it and the Nasdaq roughly 0.2% and 1.8% lower respectively.

Winners and losers: Tech shares doom Nasdaq

Shares of Advanced Micro Devices (AMD) sank 3.87%, while Nvidia dipped 2.76% and Intel slipped 0.13%.

In other tech stock, shares of Apple are down 1.27%, Meta Platforms is down 0.59%, as Microsoft fell 1.71% lower and Amazon went down 1.69%.

With rising Omicron cases around the globe, vaccine makers Pfizer are down 3.74%, Moderna is 0.85% in the red, and Johnson & Johnson is 0.29% in negative territory.

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Oil: Crude hits five-week high

Oil futures went up on Tuesday as Brent crude peaked at $80 a barrel, notching its biggest close in over a month.

GBP/USD

1.26 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0040%
Short position overnight fee -0.0042%
Overnight fee time 22:00 (UTC)
Spread 0.00090

AUD/USD

0.65 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0049%
Short position overnight fee -0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.00050

EUR/USD

1.05 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 0.00040

USD/JPY

154.39 Price
-1.250% 1D Chg, %
Long position overnight fee 0.0084%
Short position overnight fee -0.0166%
Overnight fee time 22:00 (UTC)
Spread 0.090

March Brent crude spiked $1.02, or 1.3%, to settle at $80 a barrel on ICE Futures Europe after touching a high at $80.55, while West Texas Intermediate crude for February delivery went up 91 cents, or 1.2%, to settle at $76.99 a barrel on the New York Mercantile Exchange.

In energy stock, shares of Hess are 5.69% higher, Chevron is up 1.82%, while Exxon Mobil is 3.76% in the green and ConocoPhillips is 4.34% better.

Gold: Metals edge higher before mid-week

Gold futures closed higher with February gold jumping $14.50, or 0.8%, to settle at $1,814.60 an ounce, while March silver added 25 cents, or 1.1%, at $23.056 an ounce, following a 2.3% drop on Monday.

Forex: US dollar inches closer to euro

On Tuesday, one US dollar equals $1.27 of the Canadian dollar and $0.89 of the euro, after falling to $0.88 of the European currency last week.

The yield on the benchmark 10-year U.S. Treasury note rose to 1.666% from 1.628% on Monday.

Read more: EV charging stations have miles to go in US

Markets in this article

AMD
Advanced Micro Devices Inc (Extended Hours)
135.12 USD
-3.65 -2.630%
AMZN
Amazon.com Inc (Extended Hours)
202.55 USD
-8.62 -4.080%
AAPL
Apple Inc (Extended Hours)
225.07 USD
-2.8 -1.230%
CVX
Chevron
161.62 USD
-0.67 -0.410%
CVX
Chevron
161.62 USD
-0.67 -0.410%

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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.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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