Buying US dollars to invest in US stocks has transitioned from a "win-win" situation to a "double kill"!
Since the beginning of this year, the S&P 500 Index has fallen by 6%, but for investors in US stocks priced in euros and yen, due to the sharp decline of the dollar, their losses have ballooned to an astonishing 14%. The sharp turn and unpredictability of White House policies are causing unprecedented anxiety among investors who have long viewed the USA as the ultimate safe haven.
The USD has slightly increased, benefiting from the de-escalation of trade frictions and alleviated concerns about the independence of the Federal Reserve.
The US dollar showed a mild upward trend at the beginning of this week, supported by market expectations of easing global trade tensions and reduced risks to the independence of the Federal Reserve. Last week, President Trump announced progress in trade negotiations with Japan and clearly stated there was no intention to dismiss Federal Reserve Chairman Powell.
Trump's former economic advisor harshly comments on tariffs: By the end of May, the full impact will be seen, and the poor will suffer the most!
① Trump's former economic advisor Gary Conn's warned that the impact of the USA's tariff policy will begin to show at the end of May; ② He also pointed out that tariffs are highly regressive, with low-income earners paying more in tariffs while the wealthy are less affected.
Dollar Rises on Trade War De-escalation Hopes -- Market Talk
U.S. Treasury Unlikely to Make Major Shifts in Quarterly Refunding -- Market Talk
Airlines warn of uncertainty in the USA economy putting downward pressure on ticket prices.
This month, the CEOs of American Airlines issued a warning to Wall Street, stating that demand for domestic flights in the U.S. is lower than the high expectations set in early 2025. In a series of earnings conference calls, they indicated that there are many reasons for this, ranging from President Trump's erratic tariff policies to market turbulence, with the most significant factor being the uncertainty of the U.S. economy. Robert Isom, CEO of American Airlines, stated in Thursday's quarterly earnings call: 'When people are considering holiday plans and how to spend their hard-earned money, no one really likes uncertainty.'
