DXY
S&P 500 Earnings: The Incredibly Strong U.S. Dollar Needs To Gradually Weaken
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.
Dollar hovers around two-year high, UBS sees continued strength -Currency recap
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.