🦅 What to make of Friday's US non-farm payroll
▪️ The Nasdaq-100 traded its worst week since Nov 2022 while the S&P 500 posted its worst week since Mar 2023, after US non-farm payroll came in softer than expected at +142,000 and contained downward revision of -86,000 to June/July
▪️ The unemployment rate ticked down for the first time since March 2024, subsiding to 4.2%, adding to the rise in unemployment in recent months
▪️ The silver lining to the rise in unemployment is that it has been the result of weak hiring rather than layoffs, as the economic impact due to the former will be less severe. While still concerning, this suggests it is thus far more consistent with lower potential growth than a recession in the US.
▪️ The latest employment data should remain a focus for policymakers, and is likely to be one of the key data driving the "cadence and magnitude of rate cuts," according to Governor Waller of the US Federal Reserve.
▪️ Elsewhere, however, there was resiliency. i) construction employment showed a strong gain, ii) job leavers increased as a share of the unemployed, and iii) the residential construction employment share continued to edge higher.
▪️ Investors who are keen to gain leveraged exposure to US stocks ahead of next week's FOMC rate announcement on Thu, 19 Sep may wish to consider Macquarie's US index warrants due to their ability to produce magnified moves at a smaller capital outlay.
ℹ️ Put warrants also provide protection against short-term downward moves. As an example, with the Nasdaq-100 futures down 5.1% month-to-date (as of 1045AM today), the Nasdaq-100 put warrant 📌 UUZW (https://warrants.com.sg/tools/warrantterms/UUZW) is up 34.7% to SGD 0.136, while the S&P put warrant 📌 5B5W (https://warrants.com.sg/tools/warrantterms/5B5W) is up 26.9% to SGD 0.085 with the S&P500 futures losing 3.6%
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Macquarie Warrants Singapore is an issuer and market-maker in Macquarie warrants listed on the SGX.
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