Key Highlights

  • Impinj climbed on Friday with no company-specific news found, grouped with Power Integrations, Kulicke and Soffa, Microchip Technology and Monolithic Power Systems as chip stocks that soared after the weak payrolls data pulled yields lower.
  • Impinj makes RAIN RFID chips, readers and software that let retailers and logistics companies track individual items without scanning each one by hand.
  • The Business is sensitive to the economic cycle because retailers and supply-chain operators decide how fast to roll out tagging programs based on Demand and financing conditions.
  • Treasury yields reversed during the day and closed higher, with the 10-year near its highest level since 2002, a reminder that the rate-relief trade can be fragile.

Impinj (NASDAQ:PI) had no company news on Friday, but a weak jobs report that cooled rate-hike fears was enough to lift the RFID specialist alongside a broad chip rally. Shares climbed on Friday, October 2, as semiconductor stocks rallied after a disappointing US jobs report eased worries about another Federal Reserve rate hike. Market commentary grouped Impinj with Power Integrations, Kulicke and Soffa, Microchip Technology and Monolithic Power Systems as chip stocks that soared after the payrolls data pulled Treasury yields lower in the morning. No company-specific news was found for Impinj itself.

What Impinj Does

Impinj makes RAIN RFID chips, readers and software. These tiny radio tags let retailers, logistics companies and manufacturers identify and track individual items, from a pair of jeans on a store shelf to a package moving through a warehouse, without scanning each one by hand.

The business is sensitive to the economic cycle because retailers and supply-chain operators decide how fast to roll out tagging programs based on demand and financing conditions. That helps explain why a shift in rate expectations can move the stock even on a day with no company headlines.

The Jobs Report That Moved Markets

The Labor Department said the US economy added just 29,000 jobs in September, far short of the roughly 84,000 economists expected. Private employers added only 46,000. The Unemployment rate ticked up, and revisions cut a combined 60,000 jobs from July and August.

Average hourly Earnings rose to $37.81, with annual wage growth the slowest since May 2021.

The Fed, led by Chair Kevin Warsh, raised rates on September 16 for the first time since 2023 after an oil shock tied to the war with Iran pushed Inflation back up. Before Friday, traders had seen another hike in October as likely. After the report, those odds collapsed, though they partly recovered by the close.

Lower rate expectations are generally good news for growth-oriented companies like chipmakers, whose valuations depend on earnings further in the future.

Chips Across the Board

Impinj had plenty of company. Teradyne was the best performer in the S&P 500, while Texas Instruments, Microchip, Monolithic Power, KLA and Analog Devices also posted strong gains. Nvidia hit a record high during the session. Mid-sized and smaller chip names such as MACOM, Semtech, Amkor and Entegris rallied too.

The Nasdaq Composite rose 319.27 points to 27,190.86, touching an intraday all-time high but not closing at a record. The Nasdaq-100 did post a record close at 30,807.93.

The rally was not a clean sweep for technology. Seagate and Western Digital tumbled after a report said Toshiba plans to double its hard-drive production capacity.

A Twist in the Bond Market

The early drop in yields that helped spark the rally did not last. Treasury yields reversed during the day and closed higher, with the 10-year near its highest level since 2002. The 2-year and 30-year also ended up.

That Reversal is a reminder that the rate-relief trade can be fragile. Several Fed officials have described inflation as stubbornly high in recent days, and markets are still weighing how much the weak jobs data really changes the central bank's path.

Retail and Supply-Chain Demand Will Be the Real Test

The Fed's next decision is due October 27 to 28, and Fifth Third's Bill Adams said that decision will probably be swayed by the September CPI and PPI reports, geopolitical developments, and prices at the pump. For Impinj, the coming earnings season will offer clues on retail and supply-chain demand for RFID. Whether chip stocks can extend Friday's gains while long-term yields keep climbing is the bigger test.