Nasdaq AI Bubble Cracks as Dollar Yen Shows Hidden Leverage

The Nasdaq AI bubble selloff echoes 2000, when the bubble burst only after a 44.5% relief rally sent capital rushing into Treasuries. James Stanley, StoneX Media Senior Market Analyst, breaks down five charts that test if the AI bubble has truly popped and where the hidden leverage sits. In 2000, the Nasdaq fell more than 40% as the Federal Reserve hiked, bounced 44.5% and then dropped 81% over two years once Treasuries became the better home for capital. The yen carry trade lets investors borrow cheaply in Japan and invest elsewhere, and the July 2024 unwind sent the Nikkei down 27.79% and the Nasdaq down 17.31% in a matter of weeks. Treasury yields matter for tech stocks because falling yields have lined up with capital moving out of heavy AI names and into bonds. The Nikkei gained 141.59% in about 15 months from the April 2025 lows despite a declining population, a sign of how much leverage runs through Japan. 00:00 - AI Bubble Burst Debate 01:01 - The 2000 Nasdaq Pop Playbook 03:52 - Nasdaq 100 Eye of the Storm 11:00 - Treasury Yields Steer Tech 15:40 - Nikkei Surge Without Growth 19:11 - When the Yen Carry Trade Snaps 23:41 - Iran Wild Card After Midterms 25:26 - Bubbles Only Confirm Too Late Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_james_stanley&utm_content=share Like and subscribe for more financial market insights. #Nasdaq #StoneX #JamesStanley #Nikkei --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social