On November 6, the Nikkei 225 fell below the 60,000-point level, with losses deepening to 6.5% as investors rushed to unwind AI-related positions, and the index remains exposed to further downside risk. Since late June, the Nikkei has been on a steady decline and now sits roughly 20% below its previous peak, nearing a technical bear market. The performance gap between the tech-heavy Nikkei and the Topix has widened to its largest in decades. U.S. chip stocks extended their selloff after the midterm elections, driven by market speculation that Democrats could impose restrictive measures on the AI industry, which prompted investors to dump tech shares.