Sharp declines spread across AI-related names in the US equity market, with the Dow ending around 175 points lower. The Japanese market is expected to trade below the previous day's level, with the Nikkei Average forecast to range between ¥63,800 and ¥65,000.
US equities fell sharply, with the Dow Jones Industrial Average ending trading down about $175. Heightened caution toward AI-related stocks prompted selling, sending Intel, Micron and SanDisk sharply lower. Rising crude oil futures also weighed on investor sentiment.
The Nasdaq fell more than 2%, spreading negative sentiment across technology stocks. In response, the Nikkei is expected to trade weakly during the day, with the outlook based on CME Nikkei futures seen as a downside factor. Further declines in AI-related stocks from last week are also anticipated.
Buying aimed at a rebound may emerge after the open, but funds are expected to flow mainly into groups such as software and SaaS stocks that had attracted investment during the AI rally. The expected range for the Nikkei is ¥63,800–¥65,000.