NEW YORK — The United States joined Japan in its first coordinated yen-buying intervention since 1998, a decisive move aimed at stabilizing the Japanese currency and reducing global market volatility. U.S. equities rallied immediately, led by technology shares. The Nasdaq rose 1.0 percent to 25,374, while the S&P 500 gained 0.7 percent to 7,490.
The intervention reduces the risk of Japan selling its substantial U.S. Treasury holdings to fund currency support — a scenario that could otherwise drive up long-term bond yields. Lower yields support growth-oriented tech stocks by reducing their discount rates. A weaker U.S. dollar, if sustained, would also lift multinational earnings when converted back to dollars.
Large-cap technology companies with significant international exposure led the advance. Alphabet climbed 6.7 percent to $356.13, while Amazon surged 15.3 percent to $271.58. Microsoft rose 3.0 percent to $464.72 and Meta Platforms gained 3.3 percent to $556.71.
Lasting yen strength will likely require tighter monetary policy from the Bank of Japan, analysts said. Watch upcoming Bank of Japan statements closely, particularly any signals on yield curve control policy, which could move currency and bond markets globally.
Nvidia, up 2.9 percent to $200.75, stands to benefit from a stable global economy and continued data center investment. Its next earnings report, due in late Aug. will show whether international demand is holding and how currency moves are affecting reported revenue. Management commentary on Asian capital expenditure trends is the key thing to watch.
