The Nikkei 225 plunged 3,318 points in trading on the 15th. Financial concerns stemming from the sharp drop in CoreWeave's bonds weighed on AI-related stocks, while market-moving factors ahead of next week's earnings reports from major US technology companies are drawing attention as a potential turning point.
The Nikkei Stock Average plunged 3,318.34 points from the previous day in Thursday's trading, recording its third-largest decline on record. The initial drop was attributed to profit-taking after the previous day's rebound high, while expectations for US corporate earnings and support from moving averages at lower levels helped the market rebound at one point. However, the day's decline broke through these support levels, and the MACD also crossed downward, reinforcing expectations of further declines.
A review of trading factors found that a stronger-than-expected US CPI reading and renewed expectations of additional rate hikes, persistently high long-term interest rates, financial concerns in the AI and semiconductor sectors following the sharp drop in CoreWeave bonds, and cost concerns stemming from higher oil prices and geopolitical risks combined to trigger selling across the Japanese and US markets. In particular, concerns over CoreWeave's creditworthiness heightened caution toward AI-related stocks, and declines in highly leveraged companies such as Oracle stood out.
Interest rate trends and financial concerns were the focus of the Japanese and US equity markets, while developments in the bond market were also cited as an area requiring close attention. The view was expressed that the risk of a decline in the S&P 500 would draw greater concern when the yield spread between US Treasuries and high-yield bonds widens, underscoring the need for appropriate risk management going forward. AI and semiconductor stocks in the Japanese market are susceptible to these developments, and next week's earnings reports from major US technology companies could hold the key to a market reversal.