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- Analysts doubt if the yen’s strength can be sustained, even with a joint intervention.
- Treasury Secretary Scott Bessent wants the Fed to expand a key lending facility for Japan to use.
- Trump says that Exxon and Chevron have made “too much” money on oil shortage.
- The S&P 500 lingers just short of its all time high.
- Amazon crosses $3 trillion in market cap.
Satsuki Katayama, Japan’s finance minister, speaks to members of the media in Tokyo, Japan, on Monday, Aug. 3, 2026. Japan confirmed its first joint intervention with the US in currency markets in 15 years and warned that it was ready to act again, after the yen last week slid to a four-decade low. Photographer: Kiyoshi Ota/Bloomberg via Getty ImagesBloomberg | Bloomberg | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
Japan, having intervened to prop its weakening currency to little effect in the past, roped in the U.S. to stage a coordinated intervention last week. For now, the currency’s strength seems to be holding, but experts have doubts that it will last.
Meanwhile, U.S. markets continued strengthening on a tech-fueled rally, with the S&P 500 within striking distance of its all-time high.
What you need to know today
In the recent past, Japan has stepped in to support its currency, only to watch it weaken again as rate differentials and soft fundamentals pulled it back down the road. But this time, Tokyo is not driving alone.
The latest fast and furious intervention to prevent Tokyo’s currency from drifting involved Washington, giving speculators reason to pause. But will this coordinated push accomplish what Japan’s solo efforts could not achieve?
Washington is bringing some serious heft to its action. Treasury Secretary Scott Bessent wants the Federal Reserve to expand a lending facility that would enable Japan to support its currency without roiling the sensitive U.S. Treasury market.
For now, the yen’s strength is still holding up, but analysts are doubtful it can be sustained. “Japan’s policy mix remains unlikely to generate sustained yen strength,” wrote UBS strategists Teck Leng Tan and Dominic Schnider.
Other experts say that unless Japan addresses the structural forces driving the weakness in yen, the intervention’s effects are likely to be short-lived.
Over in the U.S. markets, all three major indexes gained as tech stocks continued to rally, with the S&P 500 about 0.3% away from the all-time high it reached in early June.
Amazon shares gained 4% and hit a new all-time high on Monday, putting its market cap over the $3 trillion threshold for the first time following a better-than-expected earnings report last week. Monday’s new record is the best day for Amazon since May 5.
Earnings season is also underway, and the U.S. president has offered his two cents worth.
After energy giants Exxon and Chevron on Friday reported windfall profits for the second quarter, President Donald Trump said the companies have made “too much money” on rising crude oil prices due to the Iran war. “I don’t like it,” he said.
And finally…
Hugging Face CEO says China is winning the AI race and dominating on open models
Hugging Face CEO Clément Delangue said China is winning the artificial intelligence race with open-weight models and could catch up to U.S. model makers as soon as this year.
“They’re clearly dominating on open models right now, and I wouldn’t be surprised if they start dominating at the frontier either by the end of this year or next year at the rate of progress,” he told CNBC’s “Squawk on the Street” on Monday.
Fueling this revolution is the open collaboration and sharing ecosystem in China, while model makers in the U.S. are “building in silos” and risk falling behind, he said.
— Samantha Subin
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