Nikkei Index drops 2.1% amid concerns related to AI

Japanese stocks fell in early trading on July 16, according to Gelonghui, affected by concerns related to artificial intelligence (AI) stemming from the Wednesday decline in US memory chip stocks such as Dell and Micron Technology. The Nikkei index dropped 2.1% to 67,332.70 points. Chris Beauchamp, Chief Market Analyst at IG, stated in an email that both the Nikkei and the Nasdaq Composite index have “ridden the tailwinds of the AI boom, but now this trade appears shaken by uncertainty and faces the risk of further decline.” Among the worst-performing components of Japan's benchmark index, Kioxia fell 8.9%, International Electric fell 6.7%, and Ibiden dropped 5.9%.