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