Taiwan's stock market is fluctuating just below the 50,000-point threshold. Although the overall trend remains strong, the excessive concentration of funds in a small number of large-cap technology stocks is currently investors' biggest concern.

• Taiwan stocks edged down today, closing at 49,806 points, just 194 points short of the 50,000 mark.
• This rally has been driven mainly by the AI supply chain, spreading from semiconductors and memory to servers, cooling systems, PCBs and optical communications.
• Rising interest rates have weighed on small and mid-sized and domestic demand-oriented companies in the United States, making the gains highly uneven.
• Standard Chartered Bank's Liu Chia-hao believes funds will only rotate into domestic demand and other sectors once uncertainty over the US election is removed, rate-hike expectations are fully priced in, and oil prices stop rising.
• The rise in US Treasury yields reflects not only inflation but also competition for funds among the government, the stock market and major AI companies.

Outlook: If oil prices fall back to around US$80 per barrel over the coming year, inflationary pressure is expected to peak in the first half of next year, easing risk sentiment in the market.