Preview of US Stock Market | U.S. stock index futures all rise; Brent crude falls below $100; U.S. Treasury yields retreat.

**Premarket Market Moves** 1. On Tuesday, October 6, U.S. stock index futures all rose in premarket trading. 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%. 2. As of press time, Germany's DAX index was up 0.73%, the U.K.'s FTSE 100 was up 0.35%, France's CAC 40 was up 0.60%, and the Euro Stoxx 50 was up 0.70%. 3. 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 fall below $100 and Bessent speaks out, U.S. Treasury yields retreat from 2002 highs. U.S. Treasury yields retreated from their highest levels since 2002 as oil prices fell below $100 per barrel and U.S. Treasury Secretary Scott Bessent insisted that the government's debt burden can be controlled. The 10-year and 30-year U.S. 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 is 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 U.S.-Iran war and rising expectations that the Federal Reserve will tighten monetary policy further. Bessent sought to reassure investors, saying that a combination of economic growth and spending restraint would "soon" begin to change the U.S. government's borrowing path. In 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 restores throughput to 5.8 million barrels per day. On October 6 local time, Saudi Arabian Energy Minister 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 operation. The pipeline had been shut down on September 10 after a drone attack launched from the direction of Iraq. A person familiar with the matter said 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 saying "no" to high AI valuations, Wall Street IPO activity drops sharply. Wall Street IPO activity has slowed to a trickle, with weak investor demand for new share sales and market concerns over excessive valuations weighing on a quarter that had been expected to see a listing boom. Delays to the listings of Anthropic and OpenAI have also hit sentiment in the U.S. equity capital markets. The head of equity capital markets at a large U.S. asset management company said: "No one cares about any company other than Anthropic right now." Investment bankers' strong business this year has been largely thanks to SpaceX's June IPO. But growing market concerns about a downturn in the AI industry 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 "divorced from reality" valuations granted to companies tied to the AI investment boom. Data from BCA Research shows that shares of technology companies that listed 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 new pure gasoline vehicle 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 vehicle sales, the first time in history that the share of pure gasoline vehicle sales has fallen below 50%, and 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 was twice that of the broader market. Industry insiders attribute the accelerating market shift to oil prices. That is, affected by the Middle East conflict, fuel prices surged sharply, and consumers began seeking 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** Alphabet Inc. Class C (GOOGL.US) spends $4.3 billion on power, locking in 3,590 megawatts of long-term energy from Constellation Energy (CEG.US). Alphabet Inc. Class C has signed a contract with Constellation Energy, the largest U.S. 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 Constellation more than $4.3 billion in new investment and involves expanding capacity at multiple nuclear reactors at the power company's sites in the Midwest and mid-Atlantic China Welding Consumables, Inc. region. Large technology companies are racing to lock in massive power supplies across the United States to power data centers, striking unprecedented agreements with American Electric Power Company, Inc. Over the past two years, Constellation has announced an agreement to restart the Three Mile Island nuclear reactor in Pennsylvania to serve Microsoft Corporation data centers, while Alphabet Inc. Class C signed a deal to restart NextEra Energy's nuclear plant in Iowa. Alphabet Inc. Class C rose 0.5% premarket, while Constellation rose more than 7%. AMD (AMD.US) 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, Inc.'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 Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Su said: "We also increased our own supply and capacity in 2026, but I can say with certainty that demand is even higher than our supply. We will significantly increase supply in 2027, but we will certainly need more." AMD rose 1.6% premarket. New York securities industry profits target $90 billion! Goldman Sachs Group, Inc. (GS.US) breaks quarterly records three times in a row, Wall Street bonuses set to hit record high. New York trading and investment banking firms are having a stellar 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 earnings 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 turmoil occurs, this windfall should 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 financial market volatility and a recovery in confidence in M&A deals, major Wall Street investment banks have already posted record revenue in key business lines so far this year. Take Goldman Sachs Group, Inc., for example: it has refreshed quarterly records across all bank equity trading businesses for a third consecutive quarter. Goldman Sachs Group, Inc. rose 1% premarket. AI + aerospace "dual engines" start! Goldman Sachs Group, Inc. raises SpaceX (SPCX.US) target to $230. Ahead of SpaceX's (SPCX.US) upcoming release of third-quarter 2026 results on November 5 U.S. Eastern Time, Goldman Sachs Group, Inc. said in a research report released recently 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 key enterprise use cases and model development progress. Goldman Sachs Group, Inc. reiterated its "Buy" rating on SpaceX in the report and raised its 12-month target price to $230 from $220, 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 grow into a multi-trillion-dollar opportunity. At the same time, Goldman Sachs Group, Inc. 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% premarket. McDonald's Corporation (MCD.US) hit with class-action lawsuit in the U.S.! Accused of using an AI pricing system to illegally manipulate menu prices. The lawsuit, filed last Friday, alleges that McDonald's Corporation conspired with independent franchisees to manipulate prices using algorithms trained on non-public data, in violation of U.S. 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 Corporation 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 Corporation said franchisees make their own pricing decisions, while the use of pricing suggestion tools and analytical tools is common across industries. McDonald's Corporation rose 0.4% premarket. Report says Seagate (STX.US) and Toshiba compete for TDK's hard drive head business. According to reports, Seagate Technology Holdings PLC is engaged in fierce competition with Toshiba over TDK Corporation's hard disk drive head business. People familiar with the matter said Toshiba began talks with TDK in the spring, and Seagate then made a higher offer in the summer. They said the acquisition could be worth up to several billion dollars. The winner will control a supply chain link that plays a key role in competition 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 Corporation (WDC.US). Seagate fell 2% premarket, while Western Digital Corporation fell nearly 3% premarket. **Key Economic Data and Event Preview** 20:15 Beijing time: U.S. ADP employment weekly change for the week ended September 19 20:30 Beijing time: U.S. August trade balance 21:05 Beijing time: FOMC permanent voter and New York Fed President Williams hosts the New York Fed's 2026 Governance and Culture Reform Conference. 22:05 Beijing time: Global September supply chain pressure index 00:00 Beijing time the next day: EIA releases monthly Short-Term Energy Outlook 07:00 Beijing time the next morning: 2026 FOMC voter and Dallas Fed President Logan speaks