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: Stocks plummet on new Omicron fears

By Joseph Toppe

17:18, 20 December 2021

Omicron variant
Protein spikes on the Omicron variant - Photo: Shutterstock

Traders are selling on Monday as new Omicron fears send Wall Street into a tumble.

Halfway through the session, the Dow Jones Industrial Average dropped around 650 points, the S&P 500 is near 1.7% lower, while and the Nasdaq Composite lost approximately 1.5%.

The small-cap benchmark Russell 2000 is around 2.8% in the red.

Omicron picking up holiday steam

The latest data from the Centers for Disease Control (CDC) shows over 156,000 US cases were reported on Friday, while the Omicron strain has now been found in 43 out of the 50 US states and approximately 90 countries around the world.

The first US case of Omicron was confirmed on 1 December.

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Winners and losers: Blue-chip shares help Dow fall

On Monday, shares of Boeing are down around 2.41%, while shares of Goldman Sachs are off around 3.65% and shares of American Express are near 3.44% in the red, pulling the Dow lower by 600 points.

As Omicron concerns shake investors on Monday, shares of Pfizer are up around 2.22%, while shares of Johnson & Johnson are down 0.26% and shares of Moderna have fallen almost 2.71%.

Travel stocks are also falling on Monday as new Covid-19 fears spark consumer concerns.

Shares of Southwest Airlines are down near 1.25% and shares of United Airlines are off approximately 0.2%.

In tech stock, shares of Apple are almost 0.88% lower, shares of Meta Platforms are hovering around 2.99%% in the red, while shares of Microsoft are near 1.35% off and shares of Amazon are lower by almost 2.21%.

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

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

US30

43,436.60 Price
-0.710% 1D Chg, %
Long position overnight fee -0.0242%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 11.0

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

Oil: Crude prices shrink away from Omicron

Oil futures are down on Monday as Omicron concerns begin restricting travel.

West Texas Intermediate crude for February delivery was off $4.36, or 5.9%, at $66.50 a barrel on the New York Mercantile Exchange, while

February Brent crude, the global benchmark, shed $3.86, or 5.3%, to trade at $69.66 a barrel on ICE Futures Europe.

In energy stock, shares of Exxon Mobil are approximately 2.42% in the red, while shares of ConocoPhillips are around 1.82% lower.

Gold: Yellow metal dips below $1,800, again

Gold futures are down to start the week.

February delivery sank 0.5% to trade at $1,795.10 an ounce.

Forex: Yield dip, US buck holds firm

On Monday, one US dollar equals 1.29 of the Canadian dollar, 0.89 of the euro, and 0.76 of the Pound sterling.

The yield on the benchmark 10-year Treasury note fell to 1.387% Monday from 1.401% Friday.

Read more: YouTube TV (GOOG) revives deal with Disney (DIS) 

Markets in this article

AMZN
Amazon.com Inc (Extended Hours)
202.55 USD
-8.62 -4.080%
AXP
American Express
286.97 USD
-1.38 -0.480%
AXP
American Express
286.97 USD
-1.38 -0.480%
AAPL
Apple Inc (Extended Hours)
225.07 USD
-2.8 -1.230%
BA
Boeing Co (Extended Hours)
140.15 USD
1.58 +1.140%

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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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