A miserable jobs print vaporized rate hike paranoia, and battered growth found its favorite excuse to run
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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
Evening brief: A miserable jobs print vaporized rate hike paranoia, and battered growth found its favorite excuse to run
Published
Weak Jobs Report Cools Fed Rate Fears
September nonfarm payrolls rose by only 29,000 against expectations of 84,000, while unemployment ticked up to 4.2%, dragging Treasury yields lower. The data effectively crushed bets on an October Fed rate hike, providing much-needed relief to rate-sensitive growth assets.
PL Surges 8.4% on SpaceX Launch
Planet Labs gained 8.43% after launching 20 satellites aboard SpaceX's Transporter-18 mission, including a prototype testing Google's TPUs in orbit. Demonstrating orbital machine learning capabilities validates new high-margin enterprise data avenues, though commercial monetization timelines remain untested.
AAOI Jumps 7.7% on AI Optics Boom
Applied Optoelectronics jumped 7.71% as accelerating demand for high-speed AI data center transceivers continues to overwhelm available supply across the photonics sector. While robust order backlogs validate multi-year optical networking demand, the company faces substantial execution risks ramping its Texas production capacity.
TSLA Rallies 4.7% on Delivery Beat
Tesla climbed 4.65% after posting third-quarter global deliveries of 486,532 vehicles, beating Wall Street consensus estimates by roughly 25,000 units. The surprise outperformance indicates resilient consumer demand, though investors will closely scrutinize vehicle gross margins during the upcoming October 21 earnings call.
Earnings Season Looms Amid Fear
With the Fear & Greed Index lingering at 31, market focus shifts to next week's Treasury debt auctions and PepsiCo kicking off Q3 earnings on October 8. Strong bond auction demand and resilient early corporate guidance will be vital to test whether this rate-relief bounce can hold.
Posture: With Fear & Greed at 31 and yields easing post-soft payrolls, we maintain a Selective Opportunistic stance targeting oversold, premium growth.
Tickers in focus: QQQ, TSLA
Upcoming earnings
The day's lineup changes
No lineup changes this day.
← Thursday, October 1, 2026 · Sunday, October 4, 2026 → · October 2026 archive · Archive