Nikkei extends losses, down over 4% on AI, chip concerns
TOKYO (Kyodo) -- The Nikkei stock index extended its losses Thursday morning, tumbling over 4 percent, amid growing concerns over the profitability of
The Nikkei stock index continued its decline on Thursday morning, plummeting more than 4%, according to Kyodo news. At 10:40 a.m., the 225-issue Nikkei Stock Average dropped by 2,828.75 points, or 4.18%, from the previous session's closing at 64,915.54. The Topix index, a broader market gauge, also fell, dropping 86.30 points, or 2.11%, to 4,010.48.
This downward trend was fueled by investor unease regarding the financial health of firms involved in artificial intelligence and semiconductor sectors. This apprehension was exacerbated by the sharp decline in corporate bonds issued by major U.S. data center operator CoreWeave Inc., which triggered selling off AI- and chip-related stocks, dealers reported.
The market's gloom was further compounded by the anticipation of a second consecutive U.S. Federal Reserve interest rate increase in October. This decision followed the release of a more robust-than-expected U.S. consumer price index for September and a Beige Book report, which underscored ongoing inflationary pressures.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
