{"id":56227,"date":"2025-11-20T22:38:25","date_gmt":"2025-11-21T02:38:25","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-markets-waver-as-rate-cut-hopes-dim-tech-giants-shift-focus\/56227\/"},"modified":"2025-11-20T22:38:25","modified_gmt":"2025-11-21T02:38:25","slug":"global-markets-waver-as-rate-cut-hopes-dim-tech-giants-shift-focus","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-waver-as-rate-cut-hopes-dim-tech-giants-shift-focus\/56227\/","title":{"rendered":"Global Markets Waver as Rate Cut Hopes Dim, Tech Giants Shift Focus"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a><\/strong> have fallen to <strong>$4,061.30 per troy ounce<\/strong>, pressured by diminishing expectations of a <strong>U.S. Federal Reserve<\/strong> rate cut in December following stronger-than-expected jobs data and hawkish Fed commentary.<\/li>\n<li>The <strong>Taiwan Weighted Index (TAIEX)<\/strong> (<a href=\"\/stock\/TAIEX\">TAIEX<\/a>) plunged by <strong>3.1%<\/strong> to <strong>26,570.68<\/strong>, reflecting broader Asian market weakness driven by concerns over U.S. market losses and stretched tech valuations.<\/li>\n<li><strong>Foxconn<\/strong> (<a href=\"\/stock\/HNHPF\">HNHPF<\/a>) is nearing its maximum outsourcing capacity for electric vehicle (EV) volumes while significantly ramping up its artificial intelligence (AI) server production, now manufacturing <strong>1,000 AI racks weekly<\/strong> with further growth anticipated in <strong>2026<\/strong>.<\/li>\n<li><strong>China&#39;s benchmark Shanghai Index<\/strong> (<a href=\"\/stock\/000001.SS\">000001.SS<\/a>) slid <strong>1.4%<\/strong>, reaching its lowest level in a month amidst global market jitters and concerns over the domestic economic outlook.<\/li>\n<li><strong>SoftBank Corp.<\/strong> (<a href=\"\/stock\/9434.T\">9434.T<\/a>) priced <strong>\u00a546 billion ($292 million)<\/strong> in bonds, contributing to its record issuance this year, as the conglomerate continues its aggressive fundraising to fuel AI investments.<\/li>\n<\/ul>\n<h2>Gold Retreats as Fed Rate Cut Hopes Fade<\/h2>\n<p><strong>Gold prices<\/strong> experienced a notable decline, slipping to <strong>$4,061.30 per troy ounce<\/strong> in November, as investor expectations for a <strong>U.S. Federal Reserve<\/strong> rate cut in December continued to diminish. This downturn follows the release of stronger-than-expected jobs data and cautious statements from Fed officials, including Vice Chair Philip Jefferson, who emphasized the need to &quot;proceed slowly&quot; with further rate reductions. The September Nonfarm Payrolls reportedly rose by <strong>119,000<\/strong>, exceeding estimates, while the unemployment rate edged up slightly to <strong>4.4%<\/strong>.<\/p>\n<p>Money markets now indicate a lower probability for a 25-basis-point rate cut by the Fed in December, with odds falling to around <strong>36-48.9%<\/strong> from higher levels earlier. <em>Gold, typically a safe-haven asset that benefits from lower interest rates, has seen its appeal wane as the prospect of sustained higher rates gains traction.<\/em><\/p>\n<h2>Taiwan and China Stock Markets Experience Significant Declines<\/h2>\n<p>Asian markets broadly faced headwinds, with the <strong>Taiwan Weighted Index (TAIEX)<\/strong> (<a href=\"\/stock\/TAIEX\">TAIEX<\/a>) sliding by <strong>3.1%<\/strong> to close at <strong>26,570.68<\/strong>. This significant drop was largely attributed to heavy losses on U.S. markets overnight, fueled by fears over the <strong>Federal Reserve&#39;s<\/strong> hawkish stance and concerns about stretched valuations in technology stocks. Major technology firms like <strong>Taiwan Semiconductor Manufacturing Co. (TSMC)<\/strong> (<a href=\"\/stock\/TSM\">TSM<\/a>) and <strong>Hon Hai Precision Industry Co. (Foxconn)<\/strong> (<a href=\"\/stock\/HNHPF\">HNHPF<\/a>) saw their shares decline, contributing to the index&#39;s fall.<\/p>\n<p>Meanwhile, <strong>China&#39;s benchmark Shanghai Composite Index<\/strong> (<a href=\"\/stock\/000001.SS\">000001.SS<\/a>) also experienced a downturn, falling <strong>1.4%<\/strong> to reach its lowest point in a month. This regional market weakness reflects broader investor caution amid global economic uncertainties and a re-evaluation of growth prospects.<\/p>\n<h2>Foxconn Ramps Up AI Production Amid EV Capacity Constraints<\/h2>\n<p><strong>Foxconn<\/strong> (<a href=\"\/stock\/HNHPF\">HNHPF<\/a>), the world&#39;s largest contract electronics maker, is navigating a strategic shift, reporting that its electric vehicle (EV) volumes are approaching maximum outsourcing capacity. Concurrently, the company is aggressively expanding its focus on artificial intelligence (AI) infrastructure, with Chairman Young Liu announcing the production of <strong>1,000 AI racks weekly<\/strong>. This figure is expected to increase further in <strong>2026<\/strong>, underscoring Foxconn&#39;s pivot towards high-growth AI segments.<\/p>\n<p>The company recently partnered with <strong>OpenAI<\/strong> to advance the design and U.S. manufacturing readiness of next-generation AI infrastructure hardware, including data-center components like networking, cooling, and power systems. Foxconn&#39;s cloud and networking business, which encompasses AI servers, has already surpassed its smart consumer electronics business in revenue for two consecutive quarters, highlighting the rapid shift in its business mix. Foxconn aims to invest <strong>$2 billion to $3 billion annually<\/strong> in AI over the next three to five years, making AI the majority of its capital expenditure.<\/p>\n<h2>SoftBank Boosts AI Ambitions with Record Bond Issuance<\/h2>\n<p><strong>SoftBank Corp.<\/strong> (<a href=\"\/stock\/9434.T\">9434.T<\/a>), the telecommunications arm of <strong>SoftBank Group Corp.<\/strong> (<a href=\"\/stock\/9984.T\">9984.T<\/a>), has priced <strong>\u00a546 billion ($292 million)<\/strong> in bonds on Friday. This latest issuance contributes to the company&#39;s already record-breaking bond sales this year, as <strong>SoftBank<\/strong> continues its aggressive fundraising efforts to fuel its substantial investments in artificial intelligence. <em>The Japanese conglomerate has been actively tapping global debt markets, with total bond issuances and loans reaching approximately <strong>$24 billion<\/strong> this year, its most aggressive fundraising in recent memory.<\/em> These funds are earmarked for strategic AI initiatives, including a planned <strong>$30 billion equity stake in OpenAI<\/strong> and the ambitious <strong>$500 billion &quot;Stargate&quot; project<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gold prices have fallen to $4,061.30 per troy ounce, pressured by diminishing expectations of a U.S. Federal Reserve 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