Against the backdrop of the US midterm election shock, the Nikkei Average fell for a fifth consecutive session to below ¥58,000. Selling of AI and semiconductor-related stocks, expectations of Fed rate hikes, and concerns about the outlook for data-center demand were at the core of the factors behind the sharp decline in US markets.
On 6 November 2026, the Nikkei Average closed at ¥57,434.77, down ¥3,643.13 from the previous day, marking its fifth consecutive decline. The drop temporarily exceeded ¥4,300, and the closing price fell below ¥58,000 for the first time in approximately 7 months.
In the US market, AI-related stocks, particularly semiconductor stocks, were sold, with Advantest and SoftBank Group each temporarily down more than 15%, weighing on the Nikkei Average. The backdrop included expectations that data-center construction could be curbed following gains by the Democratic Party and concerns about tighter regulation, while views spread that delays in data-center construction would reduce semiconductor demand.
The October US employment report released the same day showed that nonfarm payrolls increased by 165,000 from the previous month, exceeding market expectations. Expectations grew that the Fed would implement an additional rate hike before year-end, based on the view that the labor market remained healthy, intensifying downward pressure. The Dow Jones Industrial Average was temporarily down more than $500. While some AI-related stocks showed signs of being bought back, selling of economically sensitive stocks continued.
Global stock declines have continued amid concerns about slower investment in AI infrastructure, and Japanese stocks are expected to remain capped. However, some market participants believe the US midterm election shock has passed, and expect a rebound early in the week, partly driven by buying back AI and semiconductor-related stocks and their perceived undervaluation.