The stock market ended lower on Monday, pressured by rising oil prices, higher Treasury yields, and ongoing geopolitical uncertainty, which increased concerns about inflation and interest rates.
Brent crude traded near $105 per barrel and WTI around $93 after President Trump rejected an Iranian peace proposal, raising fears of Middle East supply disruptions.
Meanwhile, the 10-year Treasury yield rose to 5.23%, its highest since 2007, while the 30-year yield topped 5.5%.
Overall, S&P 500 fell 0.8% to 7,684, while Nasdaq decreased 0.9% to 26,820.
Chart of the Day
Here is the one-year chart of Applied Optoelectronics (AAOI) as of September 14, 2026, when the stock was at $96.
Last quarter, its datacenter revenue jumped 140% year over year, as 800G revenue increased more than tenfold year over year. Management stated demand for its 800G and 1.6T products was expected to remain above production capacity through mid-next year, with next quarter’s 800G revenue expected to grow nearly 5x sequentially.
100G remained a large part of the company’s business, but sales were expected to decline temporarily because a customer could not source enough switches due to memory shortage, while 400G continued to grow strongly and 1.6T shipments were set to begin.
Applied Optoelectronics was also expanding its manufacturing capacity for 800G and 1.6T speed units from roughly 200,000 to more than 650,000 units per month by the end of the year, with capacity expected to reach more than 930,000 units per month by the end of next year.
AAOI is part of the Growth Portfolio. Analysts project revenue growing from ~$500 million in 2025 to ~$1 billion in 2026 then ~$2.6 billion in 2027. AAOI could be a big winner if projections become reality.
