CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

US mid-day: Dow drops after Monday’s big comeback

By Joseph Toppe

16:23, 25 January 2022

Wall Street
Banking, travel, auto stocks follow the up-down pattern - Photo: Unsplash

Wall Street continues its ups and downs on Tuesday as investors prepare for the US Federal Reserve’s policy decision on Wednesday.

Halfway through the session, the Dow Jones Industrial Average is down around 445 points, or 1.27%, the S&P 500 is off approximately 1.93%, while the Nasdaq Composite is roughly 2.56% in negative territory.

During Monday’s trading, the Dow climbed 101 points, or 0.3% after losing over 1,000 points earlier that day, while the S&P finished up 0.28%, and the Nasdaq improved 0.63%.

The US benchmark indices were trading in red territory just minutes before the closing bell.

All eyes on Fed

The US Federal Reserve will begin a policy meeting today to determine how high interest rates will go to control record inflation, which has rattled the markets in anticipation of their decision.

When the two-day meeting concludes tomorrow, the US Federal Open Market Committee is expected to outline multiple rate hikes beginning in March, while chair Jerome Powell may also reveal when the central bank could begin unwinding the balance sheet at his post-meeting news conference.

What is your sentiment on US30?

36103.6
Bullish
or
Bearish
Vote to see Traders sentiment!

Winners & losers: Auto tanks

In banking, shares of JPMorgan are off approximately 1.13%, Goldman Sachs is down around 2.04%, while Bank of America is up near 0.99% in the green.

In travel stock, shares of American Airlines are down near 0.6%, Delta Airlines is up around 1.56%, Southwest Airlines is roughly 1.13% in the red and United Airlines is almost 0.61% higher.

US500

4,583.50 Price
+0.720% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.8

US100

16,009.00 Price
+1.400% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

DE40

16,653.30 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 2.0

US30

36,103.60 Price
+0.090% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2

Meanwhile, shares of airplane manufacturer Boeing have slipped around 1.91%, while in the auto sector, shares of Tesla have fallen almost 0.89% and General Motors have retreated approximately 2.03%.

In other auto stocks, Ford is almost 3.14% lower, while Toyota is off approximately 1.49% and BMW is near 1.42% in the red.

Oil: Crude bubbles higher

Oil futures are slightly higher on Tuesday as West Texas Intermediate crude for March delivery is up 1.58% to $84.65 a barrel on the New York Mercantile Exchange, while March Brent crude was up four cents, or less than 0.1%, at $86.31 a barrel on ICE Futures Europe.

In the energy sector, shares of ConocoPhillips are up around 0.83%, Hess is down near 0.47%, while Diamondback Energy is roughly 1.32% better and Chevron is approximately 0.79% in positive territory.

Gold: Goes up

Gold futures are moving higher with February gold adding $6.50, or 0.4%, to trade at $1,848.20 an ounce.

Forex: US buck wobbles

On Tuesday, one US dollar equals $0.89 of the euro, after falling to $0.88 on Monday, and $1.26 of the Canadian dollar, after climbing to $1.27 of that currency yesterday.

The yield on the benchmark 10-year US Treasury note went up Tuesday to 1.755% in recent trading, from 1.735% on Monday.

Read more: Pinterest stock forecast: can PINS retest ?

Markets in this article

BAC
Bank of America Corp (Extended Hours)
30.80 USD
0.06 +0.200%
BAC
Bank of America Corp (Extended Hours)
30.80 USD
0.06 +0.200%

Rate this article

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 on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading