Nikkei rebounds by 10.2% and US futures rally after recent market turmoil.

From Investing.com: 2024-08-06 02:35:00

Yesterday, US stocks took a hit with the falling, but today the Nikkei rebounded by 10.2%. Wall Street is now showing signs of stability with a 1.5% increase. The carry trade is unraveling, and if support breaks around the 2.9% spread between USD/JPY, the yen may move lower. Calls for emergency rate cuts are deemed absurd by some, as the S&P 500 hasn’t even dropped 10% yet. Financial conditions are tightening, with implied correlation index hitting 38. The market may bounce this week, but long-term trends indicate changes in monetary policy and market flows.



Read more at Investing.com: Nikkei Rebounds, US Futures Rally: Is the Carry Trade Unwind Over?