Stock market crash: alignment of economic cooperation between the US and Japan and redirection of funds for re-industrialization of the US economy

On August 5, 2024, the US and Japanese stock markets showed a significant drop. This resulted in the largest drop in the Japanese stock index since 1987, by 25%, pushing it into the territory of a bear market, in which the drop in company capitalization reaches more than 20%.

In the United States, during just one day of such a fall, American companies suffered losses of about $2 trillion, of which Apple and Nvidia alone lost at least $1 trillion.

The recent changes in the Bank of Japan’s interest rates that took place on July 31, 2024, such as the increase from 0.1% to 0.25%, which is still a very low rate, were enough to support the value of the Japanese yen, which contributed to volatility in financial markets.