Prominent Wall Street short interest: Yen arbitrage risk still affects US stocks

Wall Street strategist Michael Wilson stated that if the Federal Reserve cuts interest rates significantly this month, the US stock market will face the risk of unwinding yen carry trades. He believes that an initial rate cut of more than 25 basis points could support the yen, prompting Japanese traders to withdraw from US assets, potentially triggering a negative reaction in the stock market. Since mid-July, concerns about an economic hard landing have slowed the upward momentum of the US stock market. Wilson predicts that the stock market will not rise unless the bond market trusts the Fed's policy or there is a significant improvement in growth data, with volatility expected to remain high on the eve of the Fed meeting