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Ukraine launched its largest-ever drone barrage on Moscow overnight, killing two and setting a grim tone for a Tuesday session as Treasury yields eased off 24-year highs and oil slipped below $100. Today’s digest: the Moscow attack in detail, AMD CEO Lisa Su’s pledge from Taipei to “substantially” increase chip supply in 2027, a strong FDA manufacturing win for biosimilar maker Alvotech, and why bond markets are finally catching their breath.

Futures Point Higher as Yields, Oil Pull Back

Premarket momentum carried over from Monday’s record Nasdaq close. Dow futures rose 317 points (+0.6%), S&P 500 futures gained 0.5% — within touching distance of the index’s mid-August all-time high — and Nasdaq 100 futures climbed 0.7%.

• The 10-year Treasury yield eased 0.8 bps to 5.30%, and the 30-year held near 5.63%, after Monday’s 5.349%/5.703% prints — levels not seen since 2002.
• Brent crude fell below $100 to $98.58–99.62, and WTI dropped to $87.40–88.41, as resilient Middle East exports and the G7’s 100-million-barrel emergency release eased supply fears.
• Gold futures rose 1% to $4,205 an ounce; bitcoin traded near $86,100.

Why it matters: the Treasury auctions $58 billion in 3-year notes today, and with CME FedWatch now pricing a 78% chance the Fed holds steady this month, the auction should go smoothly. Jeremy Siegel told CNBC the “Goldilocks” jobs report gives Chair Warsh “cover to hold” ahead of the midterms — but he expects yields above 5% for the rest of the year and says stocks can keep gaining only if oil stays below $90. Overseas, the euro sank near 17-month lows as investors dumped French bonds after an underwhelming budget and Spain’s prime minister called a snap election.

Related reading: Market News Roundup — Oct 05: Nasdaq Record, 24-Year Yield Highs

Ukraine Launches Biggest Drone Barrage on Moscow

Ukraine fired more than 650 drones at the Moscow region overnight — the largest single wave of the war, according to Moscow Mayor Sergei Sobyanin, who said most were intercepted. Two people were killed and nine injured in the Moscow region, Governor Andrei Vorobyov said, and a warehouse operated by e-commerce giant Wildberries was set ablaze, TASS reported.

• Ukraine’s defense ministry said last week that more than 51% of Russia’s oil-refining capacity has been disabled by Ukrainian strikes.
• Two merchant vessels were hit by drones inside Bulgaria’s Black Sea economic zone; one sank with its crew missing, while 18 crew members were rescued from the other.
• Rosatom said Ukrainian drones struck two facilities at the Russian-held Zaporizhzhia nuclear plant, killing one worker; it reported no threat to nuclear safety.
• Russia retaliated with glide bombs on a Kharkiv residential area, killing 6 and injuring 59.

Why it matters: the escalation hit just as oil markets were breathing easier — Brent back under $100 suggests traders still trust supply resilience, aided by the G7 release and OPEC+ holding November quotas steady. But a 650-drone night changes the risk calculus around Hormuz shipping and Black Sea grain/oil routes. Watch tanker traffic data: if it holds, the risk premium keeps fading; if it cracks, $100-plus returns fast.

AMD’s Lisa Su: “Substantially” More Chips in 2027

AMD CEO Lisa Su told reporters in Taipei on Tuesday that the company will “substantially increase our supply in 2027” as it races to meet AI demand, Reuters reported. Su said the purpose of her Taiwan visit was to make sure the supply chain can ramp CPU and GPU production — she has already met Foxconn and was due to meet TSMC, then fly to South Korea to discuss memory supply with Samsung and SK Hynix.

• Asked about TSMC’s reported evaluation of a Texas investment, Su didn’t answer directly but said AMD needs “more advanced wafer capacity” and is planning “three to five years ahead.”
• Su said demand will stay “very, very high for the next several years.”
• Context: AMD’s market cap crossed $1 trillion last week, backed by firm GPU orders — a 6-gigawatt multi-generation buildout with OpenAI and a 50,000-GPU MI450 supercluster with Oracle.

Why it matters: supply, not demand, is now the binding constraint on the AI trade. AMD talking about three-to-five-year planning horizons — and memory-supply trips on the same day — signals the compute capex cycle has years to run. Memory tightness is also good news for Micron and SK Hynix pricing power.

Related reading: Market News Roundup — Oct 05: Schneider-PTC $22.6B, Fed Hike Bets Fade

Alvotech Jumps 13% on FDA Manufacturing Win

The FDA approved a supplement to the biologics license application for SIMLANDI (AVT02), Alvotech’s biosimilar to Humira, allowing U.S. drug substance to be made in a second production suite at its Reykjavik facility. The new DSM2 suite effectively doubles the drug-substance capacity available for U.S. supply.

• Alvotech shares rose 13% to $6.18 in midday trading Monday, per Dow Jones.
• The approval follows the FDA’s July closure of its latest Reykjavik inspection with a “voluntary action indicated” classification, clearing a regulatory overhang.

Why it matters: biosimilars are pharma’s steadiest growth engine as blockbuster biologics lose patent protection — and in biologics, manufacturing capacity is the moat. Doubling U.S. supply flexibility for an already-commercial product de-risks Alvotech’s revenue base.

Sources

• Reuters: Wall St futures rise as yields, oil dip
• Barron’s: Tech Rally Steams Ahead on Nasdaq’s Record High
• Reuters: Ukrainian drones kill two in Moscow region
• Reuters: AMD plans to substantially increase supply in 2027, CEO says
• Dow Jones: Alvotech Shares Rise After FDA Approves Additional Manufacturing for Simlandi
• Stocktwits/CNBC: Siegel says ‘Goldilocks’ jobs report gives Warsh ‘cover to hold’
• Investopedia: 5 Things to Know Before the Stock Market Opens on Tuesday
• Reuters: Asian shares track Wall Street higher; euro near 17-month lows

With Treasury yields back at 2002 levels and oil below $100, which risk worries you most heading into earnings season — the Fed, energy prices, or geopolitics? Share your take in the comments.

Auto-posted by the Bull Lounge news desk.

Not financial advice.

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