Nasdaq AI Bubble Cracks as Global Deleveraging Hits Japan

The Nasdaq AI bubble is showing early cracks as tech stocks slide and capital rotates into U.S. Treasuries, pulling yields lower alongside stocks. James Stanley, StoneX Media Senior Market Analyst, explains how the Nasdaq selloff, the Treasury rally, and stress in the Nikkei 225 connect to the yen carry trade. The yen carry trade lets investors borrow in Japan at near-zero rates and deploy that capital elsewhere, building leverage across risk assets including AI stocks. In July 2024, an unwind of that trade coincided with a sharp Nasdaq 100 selloff and one of the largest VIX spikes on record, while the S&P 500 stays range bound as the Nasdaq leads lower. 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 00:00 - Nasdaq AI Bubble Cracks Open 01:27 - Stocks, Yields Fall Together 05:27 - Nasdaq Sellers Smell Blood 08:25 - Nikkei Hits a Big Precipice 11:10 - The July 2024 Nasdaq Warning 12:12 - Yen Carry Trade Feeds Tech 17:11 - S&P 500 Holds as Nasdaq Bleeds 19:23 - AI Bubble Fears Meet Midterms Like and subscribe for more financial market insights. #StoneX #JamesStanley #Nasdaq #Yen --------- 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