SoftBank 9-day momentum after $2 billion Intel deal triggers 5% drop

SoftBank’s stock collapsed over 5% on Tuesday after the company announced a $2 billion investment in Intel, ending a winning streak that had lasted nine trading days.

The Tokyo-based firm said it was buying Intel’s common shares at $23 each, while the chipmaker’s stock had just closed at $23.66 the day before. That gap, though small on paper, triggered a selloff that hit SoftBank hard and fast.

The deal raised eyebrows among traders already nervous ahead of the U.S. Federal Reserve’s next move. With a major Fed meeting set for later this week, Asia-Pacific markets responded with broad declines.

Markets in Asia fall as Fed and Intel news hit risk appetite

In Japan, the Nikkei 225 closed at 43,546.29, down 0.38%, following a record-setting session the day before. The Topix dropped slightly, finishing 0.14% lower at 3,116.63. The loss came after investors began pricing in not just the SoftBank-Intel headlines, but also uncertainty around global monetary policy.

South Korea followed suit. The Kospi dropped 0.81%, ending at 3,151.56, while the Kosdaq, which tracks small-cap stocks, got hit even harder, falling 1.26% and closing at 787.96. Losses also spread through China. The CSI 300, after reaching its highest point since October 2024, lost 0.38% and settled at 4,223.37.

In Hong Kong, the Hang Seng hovered flat during its final hour of trading but didn’t recover enough to make a difference. Australia’s market didn’t escape the fallout either. The S&P/ASX 200 closed at 8,896.2, down 0.7%.

Out of all the major Asia-Pacific exchanges, only India saw green. The Nifty 50 inched up 0.44%, while the BSE Sensex climbed 0.48%, going against the region-wide selloff.

Fed meeting and Ukraine talks shake global trading sentiment

U.S. stock futures were in the red early Tuesday. Dow Jones Industrial Average futures dropped 34 points, or 0.08%, S&P 500 fell 0.16%, and Nasdaq 100 slipped 0.2%.

All eyes are now on Jerome Powell, who’s expected to speak during the Fed’s annual economic symposium in Jackson Hole, Wyoming. His message could set the tone for the rest of the year.

“We expect the Federal Reserve to use Jackson Hole as an opportunity to prepare the markets and signal towards a 25 basis point cut in September and a potentially accommodating stance through year-end,” said Richard Saperstein, Chief Investment Officer at Treasury Partners.

“Since this will be Powell’s last Jackson Hole conference as Fed Chair, he’ll likely reinforce the need for Fed independence from the Executive Branch.”

The market is pricing in an 83% chance that the Fed will cut rates by 0.25 percentage points in September, according to the CME FedWatch Tool.

Retail earnings are also in the picture, as Home Depot is set to report its quarterly numbers before markets open today, and other big names like Walmart, Lowe’s, and Target will follow later in the week, and their results could add more volatility depending on how much shoppers are still spending.

On Monday, the S&P 500 closed just a fraction of a point lower (still near last week’s record), but the rally has clearly lost steam. With traders waiting for Powell, the mood has shifted toward caution.

Meanwhile, over in Washington, President Donald Trump met with Ukrainian President Volodymyr Zelenskyy and several European leaders to discuss a possible resolution to the war between Moscow and Kyiv. Trump said the United States would provide Ukraine with “security guarantees,” which gave European equity markets a modest lift Tuesday morning.

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