EL7.AI
StocksMedium•4 November 2026•
1 min read

Nikkei 225 Drops 3% as US Midterm Results Impact Tech and AI Stocks

Key Facts

1Japan's Nikkei 225 index fell over 3% amid fears that Democratic gains in the US midterms could lead to tighter regulations on data centers.

Japan's Nikkei 225 index fell by more than 3% during trading on November 4, 2026. Financial News reported that the decline was driven by investor concerns that Democratic gains in the US midterm elections could lead to tighter regulations on data centers.

The sell-off specifically targeted AI and semiconductor stocks, with the index losing over 3,000 points intraday. This market movement follows US economic data released on November 3, 2026, which showed factory orders rising by 1.8% and JOLTs job openings reaching 7.523 million.

Traders are awaiting the release of the Bank of Japan's Monetary Policy Meeting Minutes late on November 4, 2026. These minutes may provide further insight into the central bank's stance amid heightened global market volatility following the US elections.

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