Selling is expected to dominate, centered on tech stocks, amid expectations of a U.S. rate hike. The expected range for the Nikkei 225 today and movements in key indicators following U.S. market trends have been reported.
In the U.S. market on 14 October, the Dow fell $48.62 and the Nasdaq Composite fell 511.51 points. The U.S. consumer price index rose 3.7% year on year, exceeding market expectations and increasing expectations for an October rate hike. Semiconductor and AI-related stocks fell broadly, while cloud services provider CoreWeave declined sharply.
In the Tokyo market, semiconductor and AI-related stocks attracted buying after the previous day’s decline, but profit-taking emerged following ASML’s results, and the Nikkei 225 narrowed its gains throughout the day. The Nikkei 225 fell below its moving-average level, highlighting strong selling pressure. Nikkei 225 futures in the night session plunged into the ¥66,500 range.
Today’s expected range for the Nikkei 225 has been set at a high of ¥67,000 and a low of ¥66,000. Upside levels of ¥67,000, ¥68,000 and ¥69,000 and downside levels of ¥66,000, ¥65,000 and ¥64,000 have been cited. With TSMC’s earnings announcement approaching, the closing level could be affected by its full-year outlook.
Across the market, expectations for a U.S. rate hike are strengthening, while higher oil prices and tensions in the Middle East are also weighing on investor sentiment. As the sharp decline in the SOX Index and falls in major stock indexes continue, movements centered on tech stocks are expected to remain in focus.