SoftBank Stock Plummets 5% After $2 Billion Intel Investment

SoftBank Group experienced a significant stock decline of over 5% on Tuesday after announcing a major investment in Intel, ending a nine-day market rally. The Tokyo-based firm purchased Intel’s shares at a price of $23 each, coinciding with the chipmaker’s closing price of $23.66 the day before. This small price difference triggered selling pressure that impacted SoftBank heavily. 5% selloff follows concerns about Fed policy and investor uncertainty. 1, Global monetary policy is in focus after a key U.S. Federal Reserve meeting looms this week. Investors reacted to news of SoftBank’s investment in Intel, along with anticipated shifts in the global economic landscape. The broader market reacted as Asia-Pacific markets witnessed broad declines, including Japan (Nikkei 225), South Korea (Kospi), and China (CSI 300). Even the Hang Seng remained flat on Tuesday. Conversely, India saw positive performance, while Australia’s S&P/ASX 200 also declined. Trading sentiment remains cautious as investors await Fed Chair Jerome Powell’s statements at Jackson Hole. The market anticipates a possible interest rate cut this September, with a greater than 83% chance based on CME FedWatch Tool data. Retail earnings season is another key factor influencing the market; expect volatility from Home Depot and Walmart’s upcoming reports.