August 2, 2025
Article from MarketWatch by Mark Hulbert
Article Synopsis
The recent surge in the U.S. dollar contrasts sharply with its earlier 2025 decline, but history suggests that dollar movements don’t consistently predict stock market or earnings performance. However, the current political pressure on the Federal Reserve to cut interest rates – mirroring the environment before the 1987 stock market crash – raises concerns. Back then, a plunging dollar and government interference helped trigger a massive market selloff. While there’s no statistical proof that a falling dollar causes crashes, the parallels to 1987’s conditions make today’s environment potentially risky for investors.
