Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Wall Street rallies after large losses earlier in trading day

The US stock market rebounds after a volatile trading day.

Wall Street had a rally after declining by as much as 600 points for most of the trading day. The US stock market is experiencing more volatility at the end of the year.

Concern about the December downturn

The stock market closed on a positive note on the strength of utility and healthcare stocks. Despite the short-lived ‘Santa rally’ when shares are supposed to jump after the holidays, stocks have been down for most of December. Because of the uncertainty about the US government shutdown and concerns about the US-China trade impasse, the US consumer confidence index is down to its lowest point in five months. There have been a few bright spots, such as Nike and its better-than-expected second quarter (Q2) earnings.

However, even the good news in retail can’t overcome the many factors affecting the markets. Financial experts like, Bryan Reilly, managing director of CIBC Private Wealth Management, notes that with the US government shut down and the US Federal Reserve raising interest rates, consumers and investors are concerned about the markets.

‘While retail sales have been very strong, consumer confidence has ticked down here and that could continue unless there is progress made on trade, in the U.S. budget battle and certainly central bank’s policy,’ said Reilly.

What’s next for US markets in 2019

Despite the discouraging news from Wall Street, financial analysts hope that the markets will inspire companies to go public in the new year, like Uber. Michael Butler, chief executive officer (CEO) of investment firm Cascadia Capital, noted that companies could be launching their billion-dollar initial public offerings (IPO) soon in 2019 to possibly calm the volatility in the markets.

'We are hearing that companies are speeding up their IPO processes to try get out in the first half of 2019 given the recent volatility in the [US] public markets,’ said Butler.

The US Conference Board, a nonpartisan association that measures consumer confidence, had a mixture of optimism and caution for 2019. Lynn Franco, senior director of economic indicators at the organisation, said that the economy expanded in 2018, but could become more sluggish in the new year.

‘Expectations regarding job prospects and business conditions weakened, but still suggest that the economy will continue expanding at a solid pace in the short-term. While consumers are ending 2018 on a strong note, back-to-back declines in expectations are reflective of an increasing concern that the pace of economic growth will begin moderating in the first half of 2019, ‘ said Franco.

Economic indicators show that Wall Street will continue to be in for an unpredictable journey to end 2018.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See your opportunity?

Seize it now. Trade over 17,000 markets on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.