Market News
A Weak Dollar Has Added Heft to S&P 500 Earnings. A Flip Could Be Coming. - BARRON'S
A weakening dollar has provided a solid lift to early second-quarter earnings, but it could be masking softness in domestic demand and potential pressures on profit margins as tariffs increase over the coming months. The greenback has fallen nearly 9.5% so far this year and is pinned near the lowest levels since 2022 amid a mixture of slowing growth prospects, rising fiscal deficits and worries over the safety of longer term investment in American assets. Data from Apollo Global suggests companies within the benchmark generate around 41% of their total revenue from outside the U.S., and a weaker dollar increases their value when it comes to financial reporting.
