Cooler-than-expected non-farm payrolls data drove US stocks to open sharply higher, with optical communications continuing to lead the AI sector rally; Cloudflare rose 11.5% to hit a new all-time high.

US July non-farm payrolls posted an unexpected decline, prompting traders to trim bets on Federal Reserve interest rate hikes, while US stocks opened broadly higher. The Nasdaq rose 0.77% at the open, the S&P 500 gained 0.33%, and the Dow added 0.10%. According to market data from BIT (bit.com), some storage concept stocks advanced at the open, with SanDisk up over 3%. Optical communication concept stocks rallied broadly: optical module manufacturer AAOI jumped more than 7%, with the company forecasting its production capacity will expand 10-fold in two years, and its 1.6T products could secure major customer certification in as little as two weeks; Coherent rose over 9%. Among chip stocks, SK Hynix fell 1.64% while Micron gained 1.19%. Storage stocks and neocloud-related stocks mostly rose in tandem, with SNDK up 3.21% and NBIS up 1.16%. Additionally, Cloudflare climbed 11.5% to hit a record high, after the firm raised its annual revenue forecast earlier.