U.S. Margin Debt Hits Record $1.5 Trillion as Multiple Risk Signals Flash Red

According to the Financial Industry Regulatory Authority (FINRA), U.S. margin debt reached a record $1.5 trillion in June, with investors' net cash positions falling to negative $1 trillion for the first time. The surge in leverage coincides with 30-year Treasury yields holding above 5% for their longest stretch since 2007, a level that increases borrowing costs for consumers and corporations while dampening risk appetite.

Meanwhile, artificial intelligence stock momentum is cooling amid questions about profitability and cash burn, while the yen has weakened to a 40-year low near 164 per dollar, intensifying risks from unwinding carry trades that could trigger forced selling of U.S. equities and Treasuries if Japan intervenes in currency markets.