Chart of the Day - Tuesday, February 4, 2025

Patrick Dunuwila
February 4, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Jeff Weniger (@JeffWeniger).
 

  • The US Dollar Index ($DXY) reversed sharply lower yesterday after flirting with multi-year highs. It continued south today, closing slightly below $108. 
     
  • Jeff points out that $DXY has rarely been above $108 over the past 35 years. However, when it has been above this critical threshold, Tech stocks have historically underperformed.
     
  • Tech has been the worst-performing sector year-to-date, but it could reassert its leadership if $DXY continues below $108 in the coming weeks.
     

The Takeaway: The US Dollar ($DXY) closed slightly below $108 today after reversing sharply lower yesterday. If $DXY continues below this key level, Tech stocks could get their groove back.  

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