How Dollar and Tariffs Shape US Equity Markets

Discover how the interplay between the weakening U.S. dollar and tariff developments is shaping the US equity markets. Despite consensus predicting sluggish GDP growth, cyclical sectors are outperforming as markets price in solid growth prospects. Learn why a 7% year-to-date decline in the trade-weighted dollar, with expectations of a further 4% drop, boosts S&P 500 earnings by 2-3%. Explore how international revenue exposure benefits Nasdaq 100 stocks compared to small-cap indices like the Russell 2000. We also discuss the risks of escalating trade conflicts and their impact on companies with significant foreign revenues. Stay informed with Goldman Sachs’ insights on tariff risk and market resilience in this evolving landscape.

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