The US equity market roundup Q2 2022
The US equity market fell in the last quarter (Q2/2022) as investors were wary of increasing interest rate. In the US, the Federal Reserve (the Fed) enacted rate hike by 25bps (March), 50bps (May), and 75bps (June). Not only had inflation and interest rate moved higher in the US during this quarter, but also in many major economies such as Switzerland, Brazil and the UK. Apart from that, there were some other concerns among investors, i.e., the Russo-Ukraine war, China lockdowns and higher energy prices.
According to Nasdaq’s Market Intelligence Desk Team, the S&P 500 index experienced its worst first half (-20%) since 1970. The Nasdaq 100 which represents technology stocks declined -30% which marked its worst first half in 20 years. The relative outperformer was the Dow Jones which declined 15% in 1H 2022. However, June was its worst-performing month this year.
Gain exposure to the US market with warrants
With both call and put warrants, investors with either bullish or bearish views can gain exposure to the US markets. A call warrant moves in line with the underlying, increasing in value as the underlying increases, while a put warrant moves in an opposite direction to the underlying, increasing in value as the underlying decreases, and vice versa. The put warrants also allow investors to hedge their US portfolio against any downside risk in the market. In addition, with warrants being a leveraged product, investors can gain exposure with a smaller capital outlay, and yet will not be subject to any margin calls.
View useful resources below:
Live Matrix – as usual, the live matrix will be available for all Macquarie issued DWs. Our price matrix is always fixed and accurate!
DW search – find our DJI, NDX and SPX DWs via the DW search tool, which are also shown when you select the ‘US index’ underlying
Underlying charts – View the underlying charts page for DJI, NDX and SPX
Edited by DW28