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 mid-day: Dow soars as traders shrug off Omicron

By Joseph Toppe

17:30, 21 December 2021

Boeing 787 in flight
Boeing 787 in flight - Photo: Shutterstock

After three consecutive losing days, Wall Street is fighting back on Tuesday as the Dow rebounds 500 points.

Halfway through the session, the Dow Jones Industrial Average is up around 500 points, the S&P 500 went up about 1.2%, while the Nasdaq Composite tacked on 1.3% and the small-cap benchmark Russell 2000 spiked approximately 2.3% in the green.

Yesterday, increasing US cases of Omnicom spurred a sell-off as the Dow Jones Industrial Average lost around 430 points, the S&P 500 shed 1.1% and the Nasdaq Composite slipped 1.2%.

Winners and losers: Nike and Boeing spring Dow up

After plummeting during Monday’s trading, the Dow Jones Industrial Average is up big on Tuesday as blue-chip shares like Boeing are up around 5.6% and shares of Nike are trading near 6.6% in positive territory.

As traders on Wall Street push Omicron concerns aside on Tuesday, shares of Pfizer have fallen around 4.30% after trading in the green all day yesterday.

Meanwhile, shares of Johnson & Johnson are 0.46% lower, while shares of Moderna are off again, trading around 3.03% in the red.

On Tuesday, travel stocks are taking off with shares of Delta Airlines going up around 6.2%, shares of United Airlines gaining approximately 7%, and shares of Carnival moving near 9% in the green.

In tech stock, shares of Apple are around 0.58% higher, shares of Meta Platforms are 1.77% in the green, while shares of Microsoft are up near 1.24% and shares of Amazon are about 0.73% better.

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US500

5,874.80 Price
-1.230% 1D Chg, %
Long position overnight fee -0.0242%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 1.5

DE40

19,240.60 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 22:00 (UTC)
Spread 8.0

HK50

19,471.80 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0223%
Short position overnight fee 0.0004%
Overnight fee time 22:00 (UTC)
Spread 30.0

US100

20,408.80 Price
-2.240% 1D Chg, %
Long position overnight fee -0.0242%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 7.0

Oil: Crude prices rebound on Tuesday

Oil futures are higher on Tuesday with West Texas Intermediate crude for February delivery going up 94 cents, or 1.4%, to $69.55 a barrel on the New York Mercantile Exchange. February Brent crude, the global benchmark, was up 88 cents, or 1.2%, at $72.40 a barrel on ICE Futures Europe.

In energy stock, shares of Exxon Mobil are 1.53% better, while shares of ConocoPhillips are near 2.20% in positive territory.

Gold: Precious metal drops after early win

Gold futures are lower on Tuesday after starting the session with modest gains.

The continuous contract for the yellow metal is down near 0.40% to around $1,780.60.

Forex: Yields rise before midweek

On Tuesday, one US dollar equals 1.29 of the Canadian dollar, 114.17 of the Japanese Yen, and 0.89 of the euro.

The yield on the benchmark 10-year Treasury note went up 1.467% Tuesday from 1.418% Monday.

Read more: Boeing (BA) up 5% on UPS jet order 

Markets in this article

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%
BA
Boeing Co (Extended Hours)
140.15 USD
1.58 +1.140%
BA
Boeing Co (Extended Hours)
140.15 USD
1.58 +1.140%
CCL
Carnival Corp (Extended Hours)
24.34 USD
0 0.000%

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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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