---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000832442.md"
description: "How the yen carry trade hits $SPY and $QQQ.1. Borrow cheap yen in Japan(Due to low interest rates)2. Convert to dollars3. Buy US stocks ( $SPY, $QQQ, etc.)4. Profit from the rate gapThat borrowed cash helped lift US stocks.If the yen strengthens, step 3 reverses. They sell $SPY/$QQQ to repay the yen loan. Stock prices can fall from that selling.This week: US and Japan jointly bought yen after a 40 year low. Yen rose. Carry trades got stressed.Weak yen = fuel for $SPY/$QQQStrong yen = selling pressure on $SPY/$QQQWatch USD/JPY with the indices."
datetime: "2026-08-04T00:26:46.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000832442.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000832442.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000832442.md)
author: "[First Fellow](https://longbridge.com/en/profiles/27399941.md)"
generator: "portal-rs"
---

# How the yen carry trade hits $SPY and $QQQ.1. Borr…


### Related Stocks

- [SPY.US](https://longbridge.com/en/quote/SPY.US.md)
- [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md)
- [SQQQ.US](https://longbridge.com/en/quote/SQQQ.US.md)
- [PSQ.US](https://longbridge.com/en/quote/PSQ.US.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**