Nikkei Sinks 6.2% as AI Stock Sell-Off Spreads
Asian markets fell sharply after a broad sell-off of AI-related stocks on Wall Street rattled investors worldwide.
Updated on Nov. 6, 2026 in Stock Markets
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Japan's Nikkei 225 slipped 6.2% in morning trading to 57,271.19 on November 6, 2026, while South Korea's Kospi dropped 7.1%. The declines followed a sharp sell-off of AI-related shares on Wall Street, where the S&P 500 fell 4.4% on Thursday.
Why it matters
AI chip stocks have become some of the largest and most influential on Wall Street, so swings in them ripple across global markets. Investors have worried that expensive borrowing could slow construction of AI data centers, and critics argue AI stock prices had climbed into bubble territory.
Nvidia fell 9.3% and Advanced Micro Devices tumbled 17.3% while the 10-year Treasury yield eased to 4.84% from 4.90% late Wednesday. Whether the drop in AI stocks marks a lasting correction remains unclear.
The players
Nikkei 225
The Nikkei 225 is Japan's benchmark stock index, tracking 225 major companies listed on the Tokyo Stock Exchange.
Nvidia
Nvidia is a U.S. semiconductor company whose graphics processors are central to the artificial intelligence industry.
The details
Stocks tied to the AI boom have swung for months on worries that expensive borrowing could slow construction of AI data centers. The Dow Jones Industrial Average sank 1,833 points, or 3.4%, and the Nasdaq composite tumbled 5.5% on Thursday, while Australia's S&P/ASX 200 lost 0.7% to 9,003.40.
Timeline
April 2025: Trump's Liberation Day tariffs shook global markets.
October 2026: The Nasdaq set its all-time high.
Tuesday, November 3, 2026: U.S. midterm elections were held.
Thursday, November 5, 2026: The S&P 500 fell 4.4%, its worst day since April 2025.
Friday, November 6, 2026: The Nikkei fell 6.2% in morning trading.
Market Dynamics
The Nasdaq now sits 11.9% below the all-time high it set in October, marking a sharp reversal after a record run. The drop comes as investors weigh expensive borrowing against the heavy capital spending behind AI data center construction.
Investors with exposure to AI chip stocks such as Nvidia and Advanced Micro Devices saw steep losses on Thursday. Retirement and brokerage portfolios heavily weighted toward the Nasdaq may see larger swings while the sell-off continues.
The takeaway
Concentrated bets on a few AI leaders can amplify losses when sentiment shifts. Reviewing how much of a portfolio depends on the same handful of companies can help manage that risk.
Further reading
For more on how these moves are tracked, see the Stock Markets section.
Source note: This article includes information reported by Mail Online.
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