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US mid-day: Gauges lower as Wall Street takes in Fed move

By Joseph Toppe

17:06, 16 December 2021

Federal Reserve chair Jerome Powell
Federal Reserve chair Jerome Powell - Photo: Federal Reserve

Traders are more cautious on Thursday after yesterday’s US Federal Reserve announcement to speed up its “tapering” process to stall inflation.

Halfway through the session, the Dow Jones Industrial Average is up near 0.40%, the S&P 500 is wobbling between small gains and losses, while the Nasdaq Composite is around 1.09% in the red.

After Wednesday’s trading, the Dow Jones Industrial Average was up 382 points, the S&P 500 was 1.6% higher, while the tech-heavy Nasdaq Composite spiked over 2%.

Fed decision stews on Wall Street

Yesterday, the US Federal Reserve announced plans to double the pace at which it removes the accommodative policies it put in place last year amid the pandemic in order to combat the recent rise of inflation.

The Federal Open Market Committee ended its two-day meeting on Wednesday by accelerating its reduction of Treasury and mortgage security purchases and putting it on a path to zero out new purchases by March.

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Winners and losers: Banking shares find gains

In banking stock, shares of JPMorgan are up over 2%, shares of Goldman Sachs are also over 2% in the green, while shares of Bank of America are surging over 2.8% after analysts at JPMorgan named the stock a top pick for 2022.

Shares of Adobe are off near 9.48% after showing an underwhelming quarterly report.

In other tech stock, shares of Apple dropped near 2.33%, shares of Meta Platforms are down around 1.12%, and shares of Microsoft and Amazon are trading lower at 1.85% and 1.91% respectively.

In the aviation industry, shares of American Airlines are down 0.96%, shares of Delta Airlines are off near 0.46%, while shares of Southwest Airlines are around 0.92 lower and shares of United Airlines are hovering around a 1.16% loss.

US100

19,767.90 Price
+1.280% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.8

DE40

18,489.70 Price
+1.820% 1D Chg, %
Long position overnight fee -0.0214%
Short position overnight fee -0.0008%
Overnight fee time 21:00 (UTC)
Spread 2.0

US500

5,558.30 Price
+0.950% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.5

HK50

17,599.50 Price
+1.260% 1D Chg, %
Long position overnight fee -0.0238%
Short position overnight fee 0.0018%
Overnight fee time 21:00 (UTC)
Spread 5.0

Oil: Rising crude prices spur energy

Oil futures are up again on Thursday after ending yesterday in the green.

West Texas Intermediate crude for January delivery jumped 89 cents, or 1.3%, to $71.76 a barrel on the New York Mercantile Exchange, while February Brent crude, the global benchmark, spiked 66 cents, or 0.9%, at $74.54 a barrel on ICE Futures Europe.

In energy stock, shares of Exxon Mobil are up around 1.75% and shares of Chevron are near 2.08% in the positive.

Gold: Precious metal skyrockets

Gold futures are up big on Thursday as the US dollar weakens on the latest Fed decision.

February gold surged $28.40, or 1.6%, to trade at $1,792.90 an ounce, while March silver improved 79 cents, or 3.7%, to reach $22.335 an ounce.

Forex: US dollar backpedals on Fed move

On Thursday, one US dollar equals 0.88 of the euro, after making up 0.89 of the currency yesterday. The US dollar also lost ground on the Canadian dollar, going from 1.29 on Wednesday to 1.28 on Thursday.

Yields on 10-year Treasury notes fell to 1.436% on Thursday, after being up 1.460% during yesterday’s session.

Read more: Stem stock rises on aquisition of solar power control maker 

Markets in this article

ADBE
Adobe Systems Inc (Extended Hours)
555.63 USD
4.5 +0.820%
AMZN
Amazon.com Inc (Extended Hours)
182.79 USD
-0.01 -0.010%
AAPL
Apple Inc (Extended Hours)
224.25 USD
-0.64 -0.290%

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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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