Nasdaq-100 rises, S&P Flat on Jan Jobs Report; Focus on 7x Long & Short DLCs

SG DLC News
02-12

Wall Street ended mixed after a stronger-than-expected January jobs report dampened hopes for near-term Fed rate cuts. Nonfarm payrolls rose 130,000, well above the expected 55,000, while unemployment edged down to 4.3%, prompting traders to scale back bets on a March cut. Markets initially gained on the news but ended mixed: the $NASDAQ 100(NDX)$ rose 0.3%, the $S&P 500(.SPX)$ was flat, and the $Dow Jones(.DJI)$ slipped 0.1%.

Societe Generale (SG)'s Daily Leverage Certificates (DLCs) offer investors both 'Long' and 'Short' exposure with up to 7x leverage on the key US indices such as S&P 500, Nasdaq-100, and Dow Jones, enabling investors to take directional positions around macro data and earnings events.

For investors familiar with leveraged & inverse (L&I) ETFs, the DLCs work the same way in terms of the fixed leverage payoff. However, the DLCs offer higher leverage of up to 5x and 7x. The DLCs also allows investors to position themselves ahead of the US market open during Asian hours in respond to market-moving developments outside of US trading hours.

So, how do these DLCs work?

SG’s US DLCs deliver fixed daily leverage (3x, 5x, or 7x) based on US close-to-close performance.

– If the index rises 1% from one US close to the next, a 7x Long DLC gains 7%, while a 7x Short DLC falls 7% accordingly (before costs and fees).

– If the index falls 1%, the 7x Long DLC drops 7% and the 7x Short DLC rises 7%.

Each DLC’s intrinsic close is calculated using the underlying index’s level at the US market close and published on the SG DLC website.

Because US DLCs trade only during SGX hours, their prices track:

– For index DLCs: the relevant US equity index futures trading during Asian hours

– For US stock DLCs: derived spot prices from alternative trading venues active during SGX hours

Investors can reference these prices on the SG DLC website or via brokers providing US stock data during Asian trading hours.

And YES, the DLCs do offer US Stock exposure as well, on the Magnificent 7 stocks and additional names such as AMD, Broadcom and Netflix. To find out more on the US DLCs, visit dlc.socgen.com

80% Rate Cut By June: Will S&P 500 Extend Gains?
US January CPI surprised to the downside, with headline inflation rising just 0.2% MoM (vs. 0.3% expected) and 2.4% YoY, the lowest since last May. Core inflation also came in softer than forecast, pushing market pricing for a Fed rate cut before June to 80%. Treasury yields slipped as traders pulled forward easing bets, while equities initially cheered the cooling inflation print. Does softer CPI reflect higher possibility of rate cuts? Will the S&P 500 extend gains on rate-cut optimism?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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