CNBC Daily Open: Watch Japan's yen and government bond yields as Takaichi storms to an election victory

• Big Tech companies collectively lost over $1 trillion in market value over the past week, with Amazon alone shedding more than $300 billion in market capitalization
• U.S. markets rebounded strongly on Friday with the Dow closing above 50,000 for the first time, gaining 2.47%, while the S&P 500 rose 1.97% back into positive territory for 2026
• The U.S. and India released a framework for a trade deal, with Trump removing a 25% tariff on India for buying Russian oil, though India remains resistant to U.S. demands on import restrictions

Summary

Japan Election Impact:

Sanae Takaichi's Liberal Democratic Party secured a supermajority in Sunday's Lower House elections, granting her broad policy latitude including increased defense spending and food tax suspensions. The yen strengthened to 156.88 per dollar Monday, while Japanese stocks hit record highs as investor confidence surged.

Big Tech Rout:

Major technology companies collectively lost over $1 trillion in market value last week, with Amazon alone shedding $300+ billion. Despite the selloff, U.S. markets rebounded strongly Friday, with the Dow closing above 50,000 for the first time (+2.47%), the S&P 500 gaining 1.97%, and Nasdaq up 2.18%. Tech stocks including Apple, Nvidia, and Microsoft led Friday's recovery.

Key Developments:

• U.S.-India Trade: Framework deal released Friday, though India resists U.S. push to open pharmaceutical imports. Trump removed the 25% tariff on India for Russian oil purchases.
• Luckin Coffee: Opened its first high-end store in Shenzhen Sunday, shifting from budget kiosk strategy.
• Cryptocurrency: Bitcoin traded at $70,312.88, jumping 11% recently, suggesting continued investor confidence.
• Musk's Wealth: SpaceX merger with xAI valued the combined entity at $1.25 trillion. Musk's estimated 43% stake worth over $530 billion, with SpaceX now representing nearly two-thirds of his wealth.

Market Outlook:

U.S. futures pointed higher Monday evening. Analysts note AI investment remains robust despite recent volatility, with money continuing to flow into the sector.