US EQUITY OPEN: Stocks gain following weak US payrolls report

OPEN: US indices opened the final trading session of the week in the green, and continues on the strength seen in equity futures following the soft US jobs report; recapping, the headline printed 29k, way short of the expected 90k, and fell from the prior 133k. Unemployment rate rose to 4.2% (exp. & prev. 4.1%), with the participation rate also rising. Following the data set, Treasuries and spot gold rose, while the Dollar fell, to the benefit of G10 FX peers, with the former two paring most of their post-data strength. As such, money market pricing has become even less likely for a 25bps in October, with now just a 17% chance of such a move. Back to FX, Aussie is the current outperformer and the Loonie lags and is likely weighed on by weakness of USD 3-4/bbl in the crude complex. Behind the weakness is that the EU discussed a proposal to release diesel from stockpiles, while France proposed a release of diesel and crude stocks.

Sectors are predominantly in the green, with Consumer Discretionary and Materials leading, with the former benefiting from gains in Tesla (+4.5%) following strong quarterly delivery numbers. Health and Energy are the only sectors in the red, with the latter weighed on by the moves in energy. In the memory space, Western Digital and Seagate are plummeting amid reports that Toshiba is to double AI data centre HDD capacity by FY27 with USD 380mln expansion as AI storage demand surges.

Ahead, the calendar is pretty thin with Factory Orders and Fed's Logan at the top of the hour, followed by the weekly Baker Hughes Rig Count and Scope Ratings credit review on USA after-hours.

• Toshiba to double AI data centre HDD capacity by FY27
• Vylor (VYLR) will join SPX on Oct. 1st
• Twilio (TWLO) will join SPX on Oct. 6th
• Moderna (MRNA) will join NDX BMO on Oct. 9th
• Nike (NKE) rev. light & sees FY sales decline w/ weakness in Greater China, sportswear & Jordan Brand; restructuring plans & further layoffs added to concerns.
• ON Semiconductor (ON) agreed to acquire Synaptics (SYNA) for $123/shr in cash; ON expects immediate accretion to adj. EPS.
• Amazon (AMZN) seeks to offload & lease back c. $8bln of NVDA Grace Blackwell chips.
• Tesla (TSLA) Q3 total deliveries 486,532 (exp. 456,896); Q3 total production 464,391 (exp. 486,761)
• Rivian (RIVN) reaffirmed its 2026 delivery range guidance of 65,000 - 70,000; delivered a record 19,248 vehicles in Q3 (exp. 18,001 vehicles).