We’ve got a freight train of economic risk heading straight into the station this morning, and if you’re not paying attention, you’ll get flattened. 

I’m talking about the May U.S. jobs report. 

Employment, unemployment, and wage growth all drop at 8:30 a.m. ET, and every single one of those numbers is a potential landmine. 

But just to make things even spicier, Thursday’s big news was that President Donald Trump and Chinese President Xi Jinping are apparently restarting trade negotiations. 

That’s like tossing a match into a fireworks warehouse the day before the big show.

This is exactly the kind of two-pronged headline risk that rips through markets and wrecks unprepared traders. 

Better make sure you aren’t one of them.

If Unemployment Rises, Watch Bonds and the Fed

The Fed has been boxed in for over a year. 

They want inflation down, but they don’t want to kill the economy. 

If the unemployment rate climbs more than expected, the market’s going to start whispering about rate cuts again.

That means bond yields are likely to fall, gold and tech could catch a bid, and banks could get hammered.

The trade here? 

Look for relative strength in mega-cap tech and weakness in financials. 

If yields drop and the dollar follows, the Nasdaq is where you want to be.

But don’t assume a weak jobs print guarantees a rally. 

If traders start worrying the economy is slowing too fast, it could flip the script into risk-off mode. 

Be quick to reassess. 

Let price confirm your thesis.

If Wages Are Too Hot, Inflation Jitters Could Return

If hourly earnings come in high, that’s fuel on the inflation fire. 

The Fed might hold rates higher for longer. 

The market’s not pricing that in.

Watch for a spike in short-term yields, dollar strength, and a smackdown in growth stocks and small caps.

This is where options shine. 

Just be sure to manage your risk.

Consumer Credit: The Sleeper Stat

Nobody talks about this one, but it’s important. 

Consumer credit data is also being released today at 3 p.m. ET, and if it slows, it could signal that households are tapped out — especially with student loan repayments back online and credit card delinquencies rising.

If that number stinks, you’ll want to reassess exposure to discretionary names, especially retailers. 

If the consumer is cracked, they’ll show it there first.

China and Trump: A Volatility Wildcard

Trump and Xi talking again? 

That headline alone is enough to spike futures. 

But this isn’t about resolution, it’s about potential. 

The market loves potential.

If you’re trading semis, industrials, or large-cap multinationals, this matters. 

If trade rhetoric softens, these names could pop. Especially anything with heavy China exposure.

If Chinese names start getting flow, that’s your early signal. 

You don’t need to catch the whole move, just the early part with conviction.

The Bottom Line

This isn’t a normal Friday. 

This is the kind of day that separates the real traders from the ones just playing around. 

You’ve got to come in with a plan, but be ready to adjust on the fly. 

Let the reaction to today’s numbers tell you the truth. 

Keep sizing tight. 

Volatility is your friend if you know how to manage it.

Stay sharp,
— Jeff Zananiri

Want to spot the next big move before it hits the headlines?

Join Aaron Hunziker Saturday at 8 p.m. ET for a breakdown of the real signal smart traders are watching right now.

He’ll walk you through the structural trigger that’s popped up ahead of major market moves before — and it’s flashing again.👉 [Save your spot here.]