U.S. dollar and S&P 500 show weakness similar to past periods of market stress

Published 23/04/2025, 11:08
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- The U.S. dollar and the S&P 500 Index have shown significant weakness this year, a trend that aligns with previous periods of a loss of confidence in these assets, as reported by Bloomberg.

Since 1970, there have been six other instances where both the US dollar and the S&P 500 experienced a decline in the same year. These instances typically occurred during times of significant market stress.

This includes the 1970s stagflation episode, the 1990 Gulf War, and the Federal Reserve’s rate hiking campaign in 1994. The most recent instance was in 2002, following the collapse of the dot-com bubble and the 9/11 attacks.

The average decline for the dollar during these periods was 8.6%, while the S&P 500 saw an average drop of 15%. These figures are similar to the declines observed this year.

This comparison suggests that the current weakness in the US dollar and the S&P 500 is consistent with previous periods of market stress.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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