The Nikkei Average temporarily fell more than ¥1,600 in response to the sharp decline in U.S. markets the previous day, entering the ¥50,000 range for the first time in about five months. Selling was particularly pronounced in technology stocks.
The Nikkei Average temporarily fell more than ¥1,600 during trading on the 6th and, despite showing signs of a rebound toward the close, held above ¥50,000 for a time. This marked its lowest level in five months.
The sharp decline in U.S. equities the previous day spread to the U.S. market, sending major indexes including the Dow Jones Industrial Average sharply lower. Following the Democratic Party’s victory in the midterm elections, concerns spread over state regulations governing data center construction, accelerating selling centered on related stocks.
Many market participants described the decline as “record-breaking,” and some said funds were moving out of AI-related stocks. Others viewed the reaction as excessive, while some said they would closely monitor developments.