US EQUITY OPEN: Stocks open with slight downward bias but energy stocks soar on firmer crude prices

US EQUITY OPEN: Stocks opened with marginal weakness on Tuesday, extending Monday's declines following the calls for a slowdown in AI development, although losses are considerably more contained, with the Nasdaq down just 0.1%. Sectors are predominantly lower, while the equal-weight S&P falls c. 0.4%. Real Estate, Consumer Staples and Health Care lag, while Energy and Technology are the only sectors in the green. Energy stocks are outperforming alongside firmer crude prices, with Brent above USD 107/bbl and WTI above USD 103/bbl. Crude is supported by Saudi Arabia's East-West pipeline remaining offline, while Iran continues to reiterate that the Strait of Hormuz remains under its control. Adding to the upside, Libya's NOC said production and operations have been suspended at three oil fields after a valve was closed on the Al Hamada-Zawiya pipeline, warning it may need to declare force majeure if the closure persists. Meanwhile, Saudi Arabia is reportedly informing some European refiners that September crude cargo loadings have been cancelled. The US Treasury curve is steepening, partially reversing Monday's flattening, with long-end yields rising while the front end is little changed. Attention is firmly on Wednesday's FOMC rate decision, updated SEPs and Chair Warsh's press conference. The Dollar continues to outperform ahead of Wednesday's FOMC, with firmer oil prices and weakness in equities also supporting the buck, while the Yen lags once again. Looking ahead, highlights include commentary from US Treasury Secretary Bessent, shortly before this afternoon's 20-year bond auction. STOCK SPECIFICS China: Criticises US calls for a slowdown in AI development Wells Fargo (WFC): Says Q3 NIM could be better than guidance and FY26 loan growth will likely be better than guided Sysco (SYY): Launches USD 1bln stock offering Dave & Buster's Entertainment (PLAY): Surprise loss per share, revenue light and comparable sales fell; also flagged a pullback in spending and investment Waystar Holding (WAY): Exploring strategic options, including a potential sale