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: S&P rallies before bell, crypto mostly down

By Joseph Toppe

21:10, 29 December 2021

Data illustration
The NYSE will be open on 31 January - Photo: Unsplash

The major indexes wobbled during trading on Wednesday until finishing mixed just before the session closed.

The S&P 500 went up 0.1% to 4,793.06 and a new high, the Dow Jones Industrial Average jumped 90.42 points, or 0.3%, to 36,488.63, while the Nasdaq Composite dipped 0.1% just before the bell.

Halfway through the session, the Dow clung to a small gain around 0.10%, the S&P had fallen near 0.5% after starting the day in the green, while the Nasdaq Composite was roughly 0.30% down.

Wall Street open on New Year’s Eve

New York Stock Exchange’s Rule 7.2 dictates stock markets close on the Friday before a holiday falling on a Saturday and on a Monday after a holiday falling on a Sunday, unless unusual business conditions exist, such as the end of a monthly or yearly accounting period.

According to the clause, the markets will be open on Friday 31 December because it signals the end of a monthly, quarterly, and yearly accounting period, which requires a full day’s trading.

This last occurred on 1 January 2011 when the holiday was also on a Saturday.

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Winners and losers: Tech shares close up and down

In the tech industry, shares of Advanced Micro Devices (AMD) fell 3.19%, while Nvidia went down 1.06%.

In other tech stock, shares of Apple is up 0.05%, Meta Platforms is off by 0.95%, as Microsoft improved 0.21% and Amazon dipped 0.86% lower.

Shares of Tesla are down around 0.21% after financial filings published yesterday revealed CEO Elon Musk sold another 934,090 shares, representing approximately $1.02bn of the Tesla chief’s stake in the electric car builder.

After rebounding on Tuesday, travel stocks plummeted Wednesday as shares of American Airlines are 2.64% off, Delta Airlines is 1.19% lower, while Southwest Airlines is down 0.31% and United Airlines is 1.86% in negative territory.

US30

42,817.60 Price
+1.100% 1D Chg, %
Long position overnight fee -0.0234%
Short position overnight fee 0.0012%
Overnight fee time 22:00 (UTC)
Spread 11.0

US100

21,269.40 Price
+0.710% 1D Chg, %
Long position overnight fee -0.0234%
Short position overnight fee 0.0012%
Overnight fee time 22:00 (UTC)
Spread 7.0

HK50

19,824.20 Price
+0.660% 1D Chg, %
Long position overnight fee -0.0234%
Short position overnight fee 0.0015%
Overnight fee time 22:00 (UTC)
Spread 30.0

DE40

19,862.00 Price
-0.520% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee -0.0029%
Overnight fee time 22:00 (UTC)
Spread 8.0

Rising US cases of the Omicron variant have shares for vaccine maker Pfizer 0.72% lower, while Moderna and Johnson & Johnson are both higher by 2.67% and 0.70%.

Oil: Crude peaks higher midweek

Oil futures are up on Wednesday with West Texas Intermediate crude for February delivery was trading 58 cents higher, or 0.8%, to settle at $76.56 a barrel on the New York Mercantile Exchange, while February Brent crude, the global benchmark, was trading 29 cents, or 0.4%, higher to close at $79.23 a barrel on ICE Futures Europe.

Although crude prices rose, energy stocks dipped lower as shares of Exxon Mobil sank 0.88%, ConocoPhillips dipped 0.27%, while Hess and Chevron fell 0.81% and 0.51% respectively.

Gold: Yellow metal lower, still breaks $1,800 mark

Gold futures went down on Wednesday with February gold trading down $5.10, or 0.3%, to end at $1,805.80 an ounce.

Gold hit an intraday low of $1,789.10

Crypto: Digital assets trade flat

Although mixed for most of the session, cryptocurrencies are more even on Wednesday with Bitcoin down 0.65%, Ethereum off 2.17 %, while Litecoin and Monero are both higher by 1.60% and 2.78% respectively.

Bitcoin Cash is also down 1.64%.

US buck gives more ground to Pound

The yield on the benchmark 10-year US Treasury note rose to 1.542% from 1.480% on Tuesday.

On Wednesday, one US dollar equals $1.28 of the Canadian dollar, $0.88 of the euro, and $0.91 of the Swiss franc, falling slightly from its $0.92 holding last week.

Read more: No New Year's holiday for Wall Street 

Markets in this article

AMD
Advanced Micro Devices Inc (Extended Hours)
119.59 USD
0.37 +0.310%
AMZN
Amazon.com Inc (Extended Hours)
225.05 USD
1.93 +0.870%
AAPL
Apple Inc (Extended Hours)
255.01 USD
4.9 +1.960%

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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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