Stock price swings have widened on news related to AI and geopolitics, bringing the Nikkei 225 close to the ¥70,000 level. As long-term interest rates move into the 3% range in Japan and US long-term yields into the 5% range, individual investors are turning to the words of market veterans for clues on stock selection.
From the end of 2025 through 2026, stock market volatility has risen under the influence of developments involving AI and semiconductors, geopolitical risks and monetary policy. The VI, which indicates the Nikkei 225's expected volatility, exceeded 30 in 10 months over the past five years, but the current run in 2026 has continued at levels above that.
Japanese and US stocks have both seen large moves since the start of the year, and the Nikkei 225 again exceeded ¥70,000 on 6 October 2026. Long-term interest rates in both Japan and the US have also moved sharply, with Japan entering the 3% range and the US reaching the 5% range at times. Among mega-cap stocks, Kioxia Holdings has repeatedly surged and plunged, drawing mixed reactions from individual investors.
Events including the US midterm elections in November and the Chinese Communist Party Congress in 2027 are ahead, and forecasts point to another major market wave. A special feature in Nikkei Money will present insights from professional and veteran individual investors on how to interpret the news, along with ideas for selecting stocks. Parts of the feature have begun to be published on Nikkei's electronic edition.