The US dollar has seen incredible strength after the Wednesday, December 18th, ’24 FOMC meeting, and that strength has impacted various asset classes.

About 45% of S&P 500 revenue is “non-US” and roughly 55% of the S&P 500’s technology sector revenue is also non-US, so this bout of recent dollar strength could be having a marginal revenue impact on the S&P 500’s largest sector, at least in terms revenue growth.

It looks as if the US dollar could be putting in a long “double top” technically, and if the dollar would gradually weaken, this development would likely be a plus for US stocks, international stocks, and US bond market asset class returns looking forward into 2025 and 2026.

The U.S. Dollar was up 0.28% on Monday, hovering close to its two-year-high, after the Federal Reserve projected a measured pace of rate cuts ahead, sparking a surge in the currency.

The dollar’s strength continued through last week after the U.S. inflation data on Friday showed only a modest rise, further easing concerns about the pace of rate cuts next year

The mood in the market was positive on Monday, as investor sentiment saw a lift during the weekend, when a U.S. government shutdown was averted after the Congress successfully passed a spending legislation.