US private-sector hiring showed more momentum in early March. The NER Pulse, a weekly companion to the ADP National Employment Report, reported that firms added an average of 10K jobs per week in the four weeks through 7 March.<\/p>\n
This was higher than the previous reading. Weekly US labour market data due on Thursday is expected to give more detail on whether the rise is short-lived or lasting.<\/p>\n
Looking back to early March of 2025, we saw a similar moment of indecision in the labor market. A small increase in private hiring suggested a recovery was building, but it wasn’t a strong enough signal to act on with conviction. The market held its breath for the official government data, which ultimately confirmed the underlying strength and rewarded those positioned for growth.<\/p>\n
Today, we face a comparable situation as the February jobs report showed a healthy gain of 210,000 jobs, but this was paired with slowing annual wage growth of just 3.8%. This mixed signal, combined with a recent Consumer Price Index reading of 3.4%, creates significant uncertainty around the Federal Reserve’s next move. All eyes are now on the upcoming non-farm payrolls data due in the first week of April.<\/p>\n
In the coming weeks, traders should consider buying volatility ahead of that jobs report. Purchasing at-the-money straddles on indices like the SPX is a direct bet that the market will move sharply in either direction once the data is released. With the VIX index currently sitting at a moderate 18, the cost of entry for these positions is not yet prohibitive.<\/p>\n
For those with a directional bias, using options provides a defined-risk way to express a view. If we believe the labor market is re-accelerating, buying call options on rate-sensitive ETFs like the QQQ offers upside exposure with a capped downside. Conversely, if slowing wage growth is seen as a sign of a weakening consumer, put options could serve as an effective tactical position.<\/p>\n
Traders can also use option spreads to cheapen the cost of their view or to hedge existing portfolios. A bull call spread could be used to position for a moderately positive jobs report at a lower premium cost than an outright call. Meanwhile, buying simple put options on individual stocks that have run up recently can act as inexpensive insurance against a market-wide negative reaction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US private-sector hiring strengthened in early March, with firms adding 10K jobs weekly; more data awaited Thursday.<\/p>\n","protected":false},"author":103,"featured_media":16992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-45380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/45380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=45380"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/45380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16992"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=45380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=45380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=45380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}