The Carry Trade Is Unwinding: 920 Billion Gone in 40 Minutes! [Zd17GU4PwxE]
Nearly $1 trillion in US market value vanished in roughly 40 minutes after Reuters reported that the US Treasury had told banks to prepare for a possible intervention in the yen market. Behind it sits the yen carry trade: hundreds of billions of US dollars were borrowed cheaply in Japanese yen and pushed into US stocks. A stronger yen makes those borrowed positions more expensive and forces them shut. The Bank of Japan paused instead of raising interest rates, and Tokyo injected fresh money into the economy. The whipsaw was extreme. The S&P 500 had been up 7% on the day and had added about $540 billion in market capitalization, then fell 1.2% in 40 minutes and erased roughly $920 billion. Trader Ricky Gutierrez calls the prior rally irrational. Amazon gained about 15%, its biggest single-day percentage move since 2012, at a market value near $2.9 trillion. In South Korea the market rose 18% after a government intervention, while 3.4% of the adult population received margin calls. Rising US Treasury yields add pressure, since higher yields make government borrowing costlier and money-market funds more attractive than stocks. Source: Ricky Gutierrez (YouTube), from minute 04:30 Independent summary and commentary by TL;DW. #stocks #investing #finance #markets #carrytrade #yen #sp500 #amazon #shorts #rickygutierrez WARNING! Nothing here is real. This video is entirely AI-generated: the images are AI-generated, the voice is AI-generated, the script is AI-generated. Even I am AI-generated. And sooner or later the whole world will be AI-generated too. The only real thing is the source above: every fact comes from the original video linked there. If you enjoyed it anyway and it actually helped, a like and a follow would make my day. Then I'll keep generating.