Joe Mazzola is Schwab’s Head Trading & Derivatives Strategist. He is a former portfolio manager, options risk manager, and market maker for the Chicago Board Options Exchange and International Securities Exchange, with nearly 25 years of investment management experience assisting institutional and retail clients. Most recently as a portfolio manager at Shelton Capital, Joe co-managed client assets with option overlay strategies to take advantage of market volatility, manage risk, and optimize returns.
Treasury yields climbed this morning, helping keep major indexes from building on Friday's rally. Trading could be choppy and anxious the next day or two ahead of Wednesday's critical CPI data, while FOMC minutes and an ECB meeting later this week keep rates in focus.
A surprise 303,000 gain from the Nonfarm Payrolls report far exceeded Wall Street expectations of only around 200,000. Yields popped nine basis points on the news, while equities pulled back from premarket gains following the report after having rebounded from yesterday's sharp sell-off.
A day before the crucial March U.S. jobs report, major indexes added to yesterday's gains in premarket trading as rallies in Treasury yields and the dollar slowed. Job cuts last month reached the highest level for any month since early 2023, a potential sign of the labor market losing steam. Analysts expect tomorrow's jobs data to show 200,000 jobs created and unemployment of 3.8%.
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