Nikkei 225 Plummets After Two-Day Rally on Tech Losses

The Nikkei 225 index experienced extreme volatility between July 15 and July 16, 2026. On Wednesday, the index surged 1.49 percent to close at 68,751.51, marking a two-day gain of over 1,500 points. This rally was fueled by positive cues from Wall Street, cooler-than-expected U.S. producer price data from the Department of Labor, and strong earnings outlooks from chip-equipment supplier ASML Holding N.V.

Despite the growth, the market faced mid-morning jitters on Wednesday due to escalating conflict between the United States and Iran, which pushed crude oil prices to $79.08 a barrel. Similar positive momentum from Wall Street lifted the Australian S&P/ASX 200 by 0.61 percent on Wednesday, led by gains in mining and technology stocks including BHP Group.

The upward trend reversed sharply on Thursday, July 16. The Nikkei 225 fell 2,034.27 points, or 2.96 percent, to close at 66,717.24. The decline was driven by steep losses in the technology sector, with SoftBank Group tumbling over 7 percent and Kioxia Holdings dropping more than 12 percent. Gains in automotive stocks, including Toyota and Honda, provided only partial offset to the broader market downturn.