The AI rally’s next test is not earnings, chips, or the Fed.
The US Dollar Index (DX-Y.NYB) is breaking above the 100/101 zone, a level that has flipped between support and resistance in recent years. The so-called Dixie is also printing a fresh one-year high, putting the dollar back on investors’ radar after months of AI-led stock market strength. The easy historical read is risk-off.
A stronger dollar can tighten financial conditions, pressure overseas earnings, weigh on commodities, and make life harder for emerging markets. But the chart is not that simple. This embedded content is not available in your region.