After a disastrous September, stocks have started off the new month of October - which at least historically tends to do much better than its predecessor - in extremely jittery fashion, with global stocks falling to a two-year low and US equity futures first sliding as much as 0.6%, before rising as much as 0.7% in what can only be described as an extremely illiquid market where Emini top of book liquidity is now at or below 1 million. Nasdaq futures were flat, as was the dollar while 10Y yields slumped perhaps in response to Mark Cabana's latest note predicting a Fed "Twist" operation is on the horizon as the TSY market faces "breakdown." 

Risk got a boost after the new UK Chancellor of the Exchequer Kwasi Kwarteng dropped a plan unviled just 10 days ago, to abolish a 45% rate of income tax for the country's highest earners, claiming it is helping to preserve credibility when in reality it achieved just the opposite. On the other hand, the continue blow out in Credit Suisse CDS, indicative of a potential "New Lehman", pushed the company's credit risk to new record highs, surpassing even the Lehman crisis wides, and sending the company's stock to new all time lows as bets that the Swiss lender will blow up next soar.

In premarket trading, Tesla (TSLA US) fell as much as 6.5% in premarket trading after the electric vehicle maker missed third-quarter deliveries as it struggled to get its cars to customers. Shares of fellow EV makers are also under pressure on Monday as the ongoing supply- chain snarls might affect peers as they ramp up production. On the other end, energy stocks rose as the OPEC+ alliance considered its biggest production cut since the pandemic, sending West Texas Intermediate crude oil prices to just over $83 a barrel. Chevron (CVX US) +2.9% and Exxon (XOM US) +2.9%