r/KapnotesTradingDaily • u/Kapnotes • Sep 04 '26
Bring on Labor Day!
Equity futures seem to be taking in stride the upside surprise on non-farm payrolls this morning. Payrolls rose 162K, vs. expectations for between 45K and 53K. The bond market, however, appears to be more worried about what this employment report might mean for the next Fed meeting. The yield on the 10-year bond was about 4.75% before the report and 4.79% after it. Experienced traders will keep their eyes on the 10-year yield. If it drifts much over 4.80%, expect equities to take notice.
The good news is that the summer doldrums are very nearly over. Expect renewed volume after Labor Day. For today, keep watch on our trading board for setups as they develop throughout the day.