Taiwan's stock market is falling hard as oil above $100 and hotter US inflation push traders to bet the Fed will raise rates next week — bad news for stock investors, chip stocks, and anyone hoping for cheap money.

• Taiwan's main index opened sharply lower and fell more than 700 points, barely holding the 46,000 line after losing 47,000 the day before.
• TSMC, MediaTek, Foxconn, and Delta all dropped, and foreign investors were heavy sellers.
• Oil jumped past $100 a barrel as the US-Iran war keeps blocking supply, and US producer prices came in hotter than expected, with diesel leading the surge.
• Traders now put the odds of a Fed rate hike next week at 70%, up from 64%, and US government bond yields hit their highest since late 2023.
• Trading volume is shrinking while 1,300 stocks fell — a pattern that looks like July's selloff.

Outlook: With oil still rising and a Fed hike increasingly priced in, Taiwan stocks look set for more pressure, with the memory-chip crowd most at risk after its recent run.