The Nikkei Average plunged by more than ¥1,000 at one point in the afternoon, as the Democratic Party’s victory, seen as signaling caution on AI-related investment, prompted selling in semiconductor stocks. At the same time, a broad range of stocks excluding semiconductors rose at times.
The Dow Jones Industrial Average rose sharply in the previous day’s New York market, but selling pressure strengthened on the Nikkei Average in the afternoon session in Tokyo, sending it down by more than ¥1,000 at one point. The market’s high weighting in semiconductor stocks made sector-specific movements a burden on the market.
The view spread that the U.S. Democratic Party was taking a cautious stance toward AI-related investment, and sell orders were reportedly placed in IT and semiconductor-related stocks. Market participants said that funds were shifting from stocks that had driven the market to stocks focused on the domestic market, such as retailers.
However, during the afternoon session, buying back and gains were also observed across a broad range of stocks excluding semiconductors. Overall, the market saw an intermingling of movements resembling those of Glassnode among individual stocks.
The latest movements reflected short-term shifts in the direction of AI investment and the allocation of funds across sectors, influenced by fluctuations in the U.S. Dow and the composition of the domestic market.