Stocks Soar as Yen Hits Record Low Amid Rising Trade Tensions

Global markets rallied sharply on July 21, as stocks in major economies like South Korea, China, and Japan soared. The S&P 500 and Nasdaq indices rose by 0.9% and 1.3%, respectively, while the Dow climbed 0.7%. Tech shares led the charge, with the 'SOX' chip index jumping 5%.

The Japanese yen reached its lowest level against the US dollar in 40 years, falling below 163 per dollar. This decline has raised concerns about potential intervention from Tokyo to stem the tide. The yen's weakness is partly due to broad-based dollar strength and the recent spike in oil prices.

Despite the market rally, investors are wary of rising trade tensions between the US and its major trading partners. The Trump administration's imposition of tariffs on Brazilian imports and threats against Canadian exports has kept markets on edge. These developments signal that President Donald Trump remains focused on trade, although their impact may be limited.