Ten-year yields finally took a breather from 2002 levels, and AI optics sprinted right through the opening
← Thursday, October 1, 2026 · Archive
Morning brief: Ten-year yields finally took a breather from 2002 levels, and AI optics sprinted right through the opening
Published
Yields Retreat Easing Equity Market Pressure
Benchmark 10-year Treasury yields retreated to 5.24% after touching a 24-year peak of 5.34%, giving equity futures room to stabilize following heavy rate-driven selling. With sentiment mired at 27 in Fear, the pullback in borrowing costs provides welcome breathing room for long-duration growth assets, though geopolitical oil price risks keep macro volatility elevated.
Sources: bnnbloomberg.ca · thestreet.com
Coherent Rips 10.9% on Bernstein Upgrade
Coherent jumped 10.90% to $319.19 following a Bernstein initiation at Outperform with a $350 price target, spotlighting its new PhotonLink integrated optics platform for AI data centers. This validates our thesis that optical interconnects are the key AI bottleneck, though we will watch for initial fourth-quarter commercial revenue to confirm order conversions.
Sources: barchart.com · tikr.com
AAOI Surges 8.1% on Hyperscale AI Order
Applied Optoelectronics climbed 8.12% to $107.32 after securing a new volume order from a major hyperscaler for 800G single-mode data center transceivers. The win directly supports our capacity-ramp thesis, but with production near capacity limits, investors must closely monitor whether expanding manufacturing can meet guided deliveries without margin erosion.
Sources: stockstotrade.com · 247wallst.com
Cerebras Falls 4.6% Below IPO Price
Cerebras Systems fell 4.58% to $169.52, slipping under its $185 IPO price amid post-IPO lockup sales and unconfirmed reports that OpenAI may run key ultrafast workloads on rival GPUs. The headline tests customer concentration risk for our investment thesis, making formal clarification from management on anchor contract execution the critical next signal to watch.
Sources: 247wallst.com · financefeeds.com
Jobs Print at 8:30 AM Sets Tone
Wall Street is braced for the September Nonfarm Payrolls release at 8:30 AM ET, where consensus expects payroll growth of roughly 84,000 to 90,000 jobs and unemployment steady at 4.1%. An upside surprise could re-ignite Fed hike speculation and send yields surging, while a softer print would cement relief across our rate-sensitive valuation watchlist.
Sources: bnnbloomberg.ca · thestreet.com · share-talk.com
Posture: Defensive posture warranted as 10-year yields hit 5.33% and Fear & Greed drops to 28, keeping broad valuations pressured ahead of payrolls.
Tickers in focus: COHR, AAOI, QQQ
Upcoming earnings
The day's moves on the ledger
No slate changes were logged this day.