On the 6th, the Nikkei 225 index in the Tokyo stock market plunged, with the decline exceeding 4,300 yen at one point compared to the previous day. This marks the first time since May 20 that it has fallen below the critical 60,000 yen mark during trading hours, nearly six months ago.
On the 5th, the US market saw a surge in selling, particularly in AI and semiconductor-related stocks, leading the Nasdaq Composite Index to close down 5.52% at 24,315 points. This is the largest drop since April 2025, falling about 12% below the record high set in October, entering a correction phase. The S&P 500 fell by 334.89 points (down 4.36%), and the NY Dow dropped by 1,833 dollars (down 3.44%).
Among individual stocks, major semiconductor companies saw significant declines, with NVIDIA down 9.26%, AMD down 17.26%, and Broadcom down 10.43%.
The backdrop includes concerns over increased regulation on the AI industry and state-level restrictions on data center construction, following the Democratic Party's control of both houses in the US midterm elections held on the 3rd. This has led to concentrated selling in related stocks due to expectations of a slowdown in AI infrastructure investment. This movement offset the gains made on the 4th, immediately after the midterm elections.
The Tokyo market has also followed this trend, with a broad range of stocks, particularly semiconductor-related ones, being sold off. Notably, the Nikkei 225 continued its downward trend on the 5th, dropping 1,110 yen to 61,077 yen, maintaining a weak performance.
The sharp decline in AI-related stocks has also impacted the cryptocurrency market. Bitcoin (BTC) fell from over $80,800 (approximately 12.75 million yen) to as low as $75,640 (approximately 11.9 million yen) on the night of the 5th Japan time, erasing gains made after the midterm elections. This marks the lowest level in about seven weeks since September 16.
Furthermore, Ethereum (ETH) dropped 7.5% to $2,251 (approximately 350,000 yen), and Solana (SOL) fell 7.9% to the $89 range (approximately 14,000 yen), with major cryptocurrencies experiencing widespread declines.
According to cryptocurrency data site Coinglass, the 24-hour forced liquidation amount reached $1.25 billion (approximately 197 billion yen) at the time of writing, marking the largest scale since late October.
Additionally, selling pressure spread to cryptocurrency-related stocks, with Coinbase and Strategy falling by about 10%. Reports of the Democratic Party planning to investigate the Trump family's cryptocurrency-related businesses have also added to policy uncertainty.
The Crypto Fear & Greed Index, a sentiment indicator for the cryptocurrency market, plummeted from 50 (neutral) the previous day to 28, entering the "fear" level. With uncertainty surrounding U.S. stock market trends and post-midterm election policies, the cryptocurrency market may continue to experience volatile movements for the time being.
Reference: Coinglass
Image: Shutterstock
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