Japan Stocks: Nikkei Plunges More Than 3,300 Points in Third-Worst Daily Drop

Japan's Nikkei stock index recorded its third-largest single-day point decline on Thursday, as a selloff in artificial intelligence (AI) and semiconductor shares accelerated amid mounting concerns about the sector's profitability.

The index lost more than 3,300 points during the trading session, marking one of the steepest declines in the history of the Japanese stock market.

The drop was attributed to investor worries over the earnings outlook for AI and semiconductor stocks — the group that had driven the market's gains in recent months. As caution spread, selling pressure quickly engulfed many major names in the sector.

The more than 3,300-point fall made Thursday's session the third-largest single-day point drop for the Nikkei index.