Markets Swing on Rate-Cut Bets as Google Reshapes the AI Race

Markets rarely behave, but this week they outdid themselves. Traders swung from gloom to near euphoria over the growing odds of a December rate cut in the United States, tech stocks lurched on fresh AI rivalry, Japan hinted at a rate hike, the Indian rupee wheezed, and Singapore’s own Temasek found itself rethinking what a weaker US dollar means for long term returns. Not bad for a single news cycle.

In this week’s Market Focus Weekly by The Business Times, host Emily Liu sits down with Cheng Chye Hsern, head of investment at Providend, to decode a week that was equal parts drama and data. The conversation is calmer than the headlines but no less sharp, pulling together themes that matter for investors who prefer understanding to guesswork.

Why listen

A sudden shift in rate cut expectations How softening US jobs data and candid comments from senior Federal Reserve officials sent markets racing to reprice December odds.

The new shape of the AI race Google’s Gemini 3 rollout and speculation that Meta may use Google’s tensor chips change the competitive map in ways investors cannot ignore.

Japan’s mixed signals Rising inflation, a tight labour market and a weaker yen are all pushing the Bank of Japan towards action, even as politics urge caution.

The currencies everyone is watching From the faltering rupee to Temasek’s potential rethink of US dollar exposures, currency moves are now as important as equity gains.

For investors trying to make sense of the past week’s volatility, Cheng is clear that markets are still reacting to noisy data, that AI leadership is far from settled, and that currencies can reshape returns. 

But why does he think that? Listen now.

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