Pre-market market developments. On Tuesday, October 6, ahead of the US market open, the three major US stock index futures all rose. As of press time, Dow futures were up 0.71%, S&P 500 futures were up 0.50%, and Nasdaq futures were up 0.62%.

As of press time, Germany's DAX index was up 0.73%, the UK's FTSE 100 was up 0.35%, France's CAC 40 was up 0.60%, and the Euro Stoxx 50 was up 0.70%.

As of press time, WTI crude oil fell 2.28% to $87.39 per barrel. Brent crude fell 2.34% to $97.97 per barrel.

Market News

Oil prices fell below the $100 mark and Bessent spoke out, sending US Treasury yields retreating from their highest levels since 2002. US Treasury yields pulled back from their highest levels since 2002 as oil prices dropped below $100 per barrel and US Treasury Secretary Scott Bessent insisted that the government's debt burden can be brought under control. The 10-year and 30-year US Treasury yields fell 3 basis points and 4 basis points respectively to 5.27% and 5.63%, while the 2-year Treasury yield was roughly flat. On Tuesday, crude oil prices retreated amid signs that more crude supply was flowing through the Strait of Hormuz. This marked a pause in the global bond market selloff, which had been driven by inflation concerns stemming from the US-Iran war and growing expectations that the Federal Reserve would further tighten monetary policy. Bessent sought to reassure investors, saying that a combination of economic growth and spending restraint would "soon" begin to change the US government's borrowing trajectory. During a fireside chat in Pennsylvania on Monday evening, he said the government would begin to "turn this trend around."

Saudi Arabia's East-West oil pipeline restored to 5.8 million barrels per day. On October 6 local time, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said that the kingdom's East-West oil pipeline has now restored its daily throughput to 5.8 million barrels. He said that after the pipeline suffered a "serious attack," Saudi Arabia took only five to six days to restore the line's operations. The pipeline had been shut down on September 10 following a drone attack launched from the direction of Iraq. A person familiar with the matter revealed late last week that Saudi state oil company Saudi Aramco had raised the pipeline's throughput to nearly 6 million barrels per day, equivalent to more than 80% of its total capacity. About 4.5 million barrels per day of that crude can be exported through the Yanbu port on Saudi Arabia's Red Sea coast.

Investors begin to say "no" to high AI valuations, and Wall Street IPO activity drops sharply. Wall Street IPO activity has slowed to a trickle, with weak investor demand for new share offerings and market concerns about excessive valuations weighing on a quarter that had been expected to see a listing boom. Delays in the listings of Anthropic and OpenAI have also dealt a blow to sentiment in the US equity capital markets. The head of equity capital markets at a large US asset management firm said: "No one cares about any company other than Anthropic right now." Investment bankers' strong business this year has largely been thanks to SpaceX's June IPO. But growing market concerns about an AI industry downturn and public opposition to data centers have caused the IPO market to dry up in recent weeks. The banker added that investors are increasingly questioning the "out-of-touch" valuations awarded to companies tied to the AI investment boom. Data from BCA Research shows that shares of technology companies that went public this year have fallen by an average of about 23% since their first day of trading, further intensifying concerns that banks underpriced deals too aggressively in order to win underwriting business.

Witnessing history! The global share of pure gasoline-powered new car sales falls below 50% for the first time. The latest data from Mobility Global shows that in the first half of 2026, pure gasoline models accounted for 49% of global new car sales. This is the first time in history that the share of pure gasoline vehicle sales has fallen below half, and it represents a sharp decline of 24% from 73% in 2021. The data also shows that in the first half of this year, the overall auto market contracted by about 5%, while the decline in pure gasoline vehicle sales reached twice the market's rate. Industry insiders attribute the accelerating market shift to oil prices. That is, affected by the Middle East conflict, fuel prices surged sharply, prompting consumers to seek models with lower driving costs. By region, gasoline vehicle sales in China fell 26% year-on-year in the first half, the largest decline globally; Europe followed with a 13% drop. In terms of pure electric vehicle sales, the European market grew 32% year-on-year to 1.81 million units; the Southeast Asian market grew 81% year-on-year to 350,000 units; and the Oceania market doubled to 110,000 units.

Individual Stock News

Google splashes $4.3 billion on power, locking in 3,590 megawatts of long-term energy from Constellation Energy. Google has signed a contract with Constellation Energy, the largest US grid operator, to purchase 3,590 megawatts of power, with new nuclear power accounting for about a quarter of that supply. The two companies said the agreement will bring more than $4.3 billion in new investment to Constellation and involves expanding capacity at multiple nuclear reactors owned by the power company in the Midwest and Mid-Atlantic regions. Large technology companies are racing to lock in massive power supplies across the United States to power data centers, striking unprecedented agreements with US power companies. Over the past two years, Constellation has announced an agreement to restart the Three Mile Island nuclear reactor in Pennsylvania to serve Microsoft data centers, while Google signed a deal to restart NextEra Energy's nuclear plant in Iowa. Google rose 0.5% pre-market, while Constellation gained more than 7%.

AMD's Lisa Su: Chip demand will remain "very high," calls for stronger safety cooperation among AI companies. AMD CEO Lisa Su said on Tuesday that chip demand will remain "very high" in the coming years, even as the industry faces challenges such as AI safety concerns. She said that even if AMD increases production, demand still exceeds supply. She called on top AI companies to cooperate to ensure the technology does not cause harm. AMD's optimistic tone further reinforced bullish sentiment in the AI industry, as evidenced by Micron Technology's strong outlook and Hon Hai Precision's better-than-expected quarterly sales. However, some investors are increasingly worried about overcapacity, rising debt levels, and regulatory setbacks in the industry. During a visit to supply chain partners including TSMC, Su said: "We also increased our own supply and capacity in 2026, but I can certainly say that demand is even higher than our supply. We will significantly increase supply in 2027, but we will definitely need even more." AMD rose 1.6% pre-market.

New York securities industry profits target $90 billion! Goldman Sachs breaks quarterly records three times in a row, and Wall Street bonuses are set to hit an all-time high. New York's trading and investment banking firms are having a banner year, on track to deliver record profits for the entire industry, with profits at the current pace set to exceed $90 billion, while bonuses are expected to reach an all-time high. According to a report by New York State Comptroller Thomas DiNapoli, this annual profit estimate, based on growth in the first half of 2026, will easily surpass last year's record of $65.1 billion. DiNapoli said that as long as no major economic upheaval occurs, this windfall should translate into a record set of bonuses for financial professionals across the industry in the new year, though he did not give a specific figure. Driven by volatility in financial markets and a recovery in confidence for mergers and acquisitions, major Wall Street investment banks have so far this year reported record revenues in key business lines. Take Goldman Sachs Group, for example: it has posted quarterly records across all bank equity trading businesses for a third consecutive quarter. Goldman Sachs rose 1% pre-market.

AI plus aerospace "twin engines" start up! Goldman Sachs raises SpaceX target to $230. Before SpaceX is scheduled to release its third-quarter 2026 results on November 5 US Eastern Time, Goldman Sachs said in a recent research report that it had updated and raised its forecasts for the company's artificial intelligence (AI) business, including computing capacity, revenue, and margin forecasts, based on the company's recent trading activity, latest public statements, and progress in key enterprise use cases and model development. Goldman Sachs reiterated its "buy" rating on SpaceX in the report and raised its 12-month target price from $220 to $230, implying nearly 45% upside from last Friday's closing price. The bank continues to believe that SpaceX is well positioned to expand in the following areas: space business (launch and reusability), connectivity business (broadband and mobile satellite constellations), and AI business (computing, X, and others). Over a time horizon of more than five years, each of these markets has the potential to become a multi-trillion-dollar opportunity. At the same time, Goldman Sachs remains bullish on the merged company's vertical integration strategy and the structural cost and competitive advantages it creates. The bank expects these advantages to further accumulate and gain momentum in the coming years. SpaceX rose 0.4% pre-market.

McDonald's hit with class-action lawsuit in the US! Accused of using an AI pricing system to illegally manipulate menu prices. The lawsuit was filed last Friday, alleging that McDonald's conspired with independent franchisees to use algorithms trained on non-public data to manipulate prices, in violation of US antitrust law. The lawsuit cited related media reports and noted that other fast-food companies have also begun using AI-assisted pricing and other operational work. The lawsuit said: "Independently operated businesses must set their own prices independently." McDonald's said in a statement on Monday that the allegations are "baseless and lack sufficient informational support." The company said: "AI does not set prices for the Big Mac or any other menu item." McDonald's said franchisees make their own pricing decisions, and that the use of pricing suggestion tools and analytics tools is very common across industries. McDonald's rose 0.4% pre-market.

Report says Seagate and Toshiba are competing for TDK's hard drive head business. According to reports, Seagate Technology is fiercely competing with Toshiba for TDK's hard disk head business. People familiar with the matter said Toshiba began talks with TDK in the spring, after which Seagate submitted a higher bid in the summer. They said the acquisition could be worth up to several billion dollars. The winning bidder would control a supply chain link that plays a key role in the hard drive market, which is currently dominated by three companies. TDK is currently the only independent manufacturer of hard disk drive (HDD) magnetic recording heads, supplying not only the two bidders but also Western Digital. Seagate fell 2% pre-market, while Western Digital fell nearly 3% pre-market.

Key Economic Data and Event Preview

Beijing Time 20:15 US ADP weekly employment change for the week ended September 19. Beijing Time 20:30 US August trade balance. Beijing Time 21:05 FOMC permanent voter and New York Fed President Williams hosts the New York Fed's 2026 Governance and Culture Reform Conference. Beijing Time 22:05 Global September supply chain pressure index. Beijing Time 00:00 the next day EIA releases its monthly short-term energy outlook report. Beijing Time 07:00 the next morning 2026 FOMC voter and Dallas Fed President Logan delivers a speech.