Invesco DB USD Index Bullish Fund ETF (ARCA: UUP)

Ultime notizie per Invesco DB USD Index Bullish Fund ETF (ARCA:UUP)

PowerShares DB USD Index Bullish

The fund invests in futures contracts in an attempt to track its index. The index is calculated to reflect the changes in market value over time, whether positive or negative, of long positions in DX Contracts.

Invesco Government & Agency Portfolio, Institutional Class

Invesco Government & Agency Portfolio

Invesco DB US Dollar Index Bullish Fund

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PowerShares DB US Dollar Index Bullish Fund

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manufacturing ai

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Dinamiche di mercato e politica monetaria: gli elementi che stanno definendo le prossime decisioni economiche.

Inflazione USA sotto le attese: cosa significa per i mercati e la Fed

Invesco DB USD Index Bullish Fund ETF

On Thursday, May 29, U.S. markets closed higher, lifted by Nvidia's strong earnings despite a warning over reduced China sales due to export restrictions. A court reinstated sweeping Trump-era tariffs, though investors largely shrugged off the impact.
Salesforce slipped despite raising its outlook, while Boeing rose on increased production plans. GDP showed a modest contraction, and Best Buy tumbled on softer consumer demand.
In economic data, U.S. jobless claims rose by 14,000 to 240,000 last week, exceeding the expected 230,000. The economy shrank at a 0.2% annual rate in the first quarter, slightly better than the earlier 0.3% estimate.
Most S&amp;P 500 sectors ended higher on Thursday, led by utilities, real estate, and health care. Communication services stocks were the only major decliners.
The Dow closed higher by 0.28% at 42,215.73, the S&amp;P 500 gained 0.40% to 5,912.17, and the Nasdaq rose 0.39% to 19,175.87.
Asia Markets Today
<ul class="wp-block-list">
<li>On Friday, Japan's Nikkei 225 closed 1.25% lower at 37,952.50, led by losses in the Paper &amp; Pulp, Transport and Communication sectors.</li>
<li>Australia's S&amp;P/ASX 200 rose 0.30%, ending the session at 8,434.70, led by gains in the Gold, Utilities, and Consumer Staples sectors.</li>
<li>India's Nifty 50 was down 0.32% at 24,755.40, and Nifty 500 slid 0.28% to 22,797.05.</li>
<li>China's Shanghai Composite was down 0.47% at 3,347.49, and Shanghai Shenzhen CSI 300 declined 0.48% to 3,840.23.</li>
<li>Hong Kong's Hang Seng closed the session 1.20% lower at 23,289.77.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was up 0.57%.</li>
<li>Germany's DAX index gained 0.386%.</li>
<li>France's CAC 40 rose 0.37%.</li>
<li>U.K.'s FTSE 100 index traded higher by 0.76%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 0.56% at $61.28/bbl, and Brent was up 0.47% at $63.66/bbl.</li>
<li>Natural gas rose 0.48% to $3.539.</li>
<li>Gold traded lower by 0.67% to $3,321.44, Silver slid 0.46% to $33.270, and Copper was up 0.10% to $4.6800.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow Jones futures slid 0.06%, the S&amp;P 500 declined 0.12%, and the Nasdaq 100 was down 0.13%.
Forex at 05:45 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index gained 0.32% to 99.32, USD/JPY was down 0.13% to 144.04, and USD/AUD rose 0.39% to 1.5582.</li>
<li>The U.S. dollar weakened Friday as markets reacted to renewed tariff uncertainty after a court reinstated Trump's duties. Legal back-and-forth and stalled trade talks added pressure, while Asian stocks fell and investors turned cautious.</li>
</ul>
Related:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/05/45688655/trump-administration-mulls-global-tariffs-of-about-15-for-150-days-under-existing-trade-laws-report" target="_blank" rel="noreferrer noopener">Trump Administration Mulls Global Tariffs Of About 15% For 150 Days Under Existing Trade Laws: Report</a></li>
</ul>
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Asia In Red, Europe Edges Higher, Dollar Gains - Global Markets Today While US Slept

On Wednesday, May 28, U.S. markets closed lower as investors digested cautious Federal Reserve signals and weakness in chip-related stocks. Nvidia shares jumped in after-hours trading following strong earnings, though its future revenue outlook was disappointing. Cadence and Synopsys plunged after reports of a renewed U.S. ban on semiconductor design software sales to China. Fed officials warned of difficult economic tradeoffs ahead.
In economic data, the U.S. Fifth District composite manufacturing index climbed to -9 in May, up from -13 in April.
All S&amp;P 500 sectors ended in the red Wednesday, with utilities, materials, and energy stocks posting the steepest declines.
The Dow closed lower by 0.58% at 42,098.70, the S&amp;P 500 declined 0.56% to 5,888.55, and the Nasdaq slid 0.51% to 19,100.94.
Related: <a target="_blank" href="https://www.benzinga.com/news/25/05/45660322/trump-tariffs-struck-down-by-federal-court-major-blow-to-white-houses-trade-strategy-report" rel="noreferrer noopener">Trump Tariffs Struck Down By Federal Court — Appeal Filed By Administration: Report</a>
Asia Markets Today
<ul class="wp-block-list">
<li>On Thursday, Japan's Nikkei 225 closed 1.88% higher at 38,432.00, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia's S&amp;P/ASX 200 rose 0.15%, ending the session at 8,409.80, led by gains in the Energy, IT, and Telecom Services sectors.</li>
<li>India's Nifty 50 was up 0.27% at 24,819.20, and Nifty 500 rose 0.31% to 22,848.95.</li>
<li>China's Shanghai Composite was up 0.70% at 3,363.45, and Shanghai Shenzhen CSI 300 gained 0.59% to 3,858.70.</li>
<li>Hong Kong's Hang Seng closed the session 1.35% higher to 23,573.38.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was up 0.75%.</li>
<li>Germany's DAX index gained 0.39%.</li>
<li>France's CAC 40 rose 0.73%.</li>
<li>U.K.'s FTSE 100 index traded higher by 0.01%.</li>
<li>European shares rose as a U.S. court blocked Trump's tariffs, lifting sentiment. Gains were led by tech, luxury, and materials stocks, while trade uncertainty limited broader advances.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 1.42% at $62.74/bbl, and Brent was up 1.32% at $65.15/bbl.</li>
<li>Oil prices rose about $1 a barrel Thursday after a U.S. court blocked most of Trump's tariff, easing economic concerns.</li>
<li>Natural gas slipped 0.20% to $3.550.</li>
<li>Gold traded lower by 0.49% to $3,305.91, Silver rose 0.79% to $33.423, and Copper was up 0.74% to $4.7090.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow Jones futures rose 0.96%, the S&amp;P 500 gained 1.47%, and the Nasdaq 100 was up 1.93%.
Forex at 05:45 AM ET
The U.S. dollar index gained 0.04% to 99.94, the USD/JPY rose 0.22% to 145.13, and the USD/AUD slid 0.30% to 1.5514.
Photo via Shutterstock

Asia And Europe Markets Gain, Trump's Tariff Rejection By Court Fuels Commodity Rally - Global Markets Today While US Slept

Rising tariffs could reignite inflation while shifts in global investor confidence may undermine the U.S. dollar's safe-haven status, according to the Federal Reserve's May meeting minutes, which reflect growing concern <a href="https://www.benzinga.com/news/econ-s">over lasting economic headwinds.</a>
<h3 class="wp-block-heading">Tariffs And Inflation: A Risky Combination</h3>
Participants agreed inflation had eased since its 2022 peak but remains "somewhat elevated" and could accelerate due to new trade barriers. 
"Participants judged that it was likely to be boosted by the effects of higher tariffs, although significant uncertainty surrounded those effects," the minutes stated. 

Reports from businesses and surveys suggest that "firms generally were planning to either partially or fully pass on tariff-related cost increases to consumers."
Some participants warned that even firms unaffected by tariffs might use the price environment as cover to raise their own.
Several Fed officials noted rising short-term inflation expectations in markets and surveys, which could pressure firms to keep raising prices. 
Although long-term expectations remain anchored, the risk of upward drift remains. "Some participants saw the risk that they could drift upward, which could put additional upward pressure on inflation," according to the minutes.
Tariffs on intermediate goods and related supply chain disruptions were seen as potentially contributing to "a more persistent increase in inflation," echoing the kind of price stickiness seen during the pandemic era.
<h3 class="wp-block-heading">US Assets And Financial Volatility: A Growing Concern</h3>
Multiple participants raised alarms over financial market behavior in April, highlighting that "heightened volatility" had emerged across asset classes. 
Particularly notable was the unusual pattern of longer-term Treasury yields rising while the dollar depreciated, even as equity prices fell.
Such a divergence, they said, could signal deeper shifts. 
"Participants noted that a durable shift in such correlations or a diminution of the perceived safe-haven status of U.S. assets could have long-lasting implications for the economy."
These concerns intersect with broader financial vulnerabilities. While household and corporate balance sheets appear healthy, some participants flagged "high levels of leverage at hedge funds" and potential risks from the private credit market. 
They added that higher rates or an economic downturn could amplify these issues.
<h3 class="wp-block-heading">Labor Market: Resilient But At Risk</h3>
The Fed found labor market conditions to be "broadly in balance," with unemployment stable and layoffs low. But some businesses have started "limiting or pausing hiring because of elevated uncertainty," and participants acknowledged a growing risk of labor market weakness in the months ahead.
Importantly, officials downplayed the labor market as a major inflation driver for now. "Several participants commented that labor market conditions were unlikely to be a source of inflationary pressure."
<h3 class="wp-block-heading">Economic Growth: Stable, But Threatened by Policy Uncertainty</h3>
The Fed recognized solid economic momentum, with consumer spending strong in March and private domestic final purchases—a key growth measure—rising in the first quarter. Yet, real GDP dipped slightly, possibly due to statistical quirks involving a surge in pre-tariff imports.
Even so, sentiment is softening. "Several participants noted that their contacts or surveys reported sharp declines in business sentiment," and many firms are delaying capital expenditures. Retailers, manufacturers and small businesses appear most exposed to tariff pressures.
<h3 class="wp-block-heading">Market Reactions</h3>
Stocks remained broadly unchanged in reaction to the minutes, with the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) still down 0.1% for the day. 
Yields on 30-year Treasury bonds slightly softened to 4.98%, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) trimming session losses.
The dollar held onto session gains, with the U.S. dollar index, which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), up 0.3%. 
Read now: <a href="https://www.benzinga.com/25/05/45644145/nvidia-stock-is-bullish-ahead-of-q1-earnings-but-will-h20-chip-woes-dampen-the-party">Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?</a>
Photo: Shutterstock
<a href="https://www.benzinga.com/25/05/45644145/nvidia-stock-is-bullish-ahead-of-q1-earnings-but-will-h20-chip-woes-dampen-the-party"> </a>

Broad U.S. Equity ETFs

Federal Reserve

iShares Trust Barclays 20+ Year Treasury Bond Fund

Federal Reserve Minutes Flag Tariff-Driven Inflation, Eye US Market Volatility As Economic Risk

On Tuesday, May 27, U.S. markets closed higher as Trump delayed a 50% EU tariff, boosting investor confidence alongside a surprise 14.4% jump in consumer sentiment. The Nasdaq led gains, fueled by AI stocks in the "Magnificent Seven." Markets rebounded sharply from recent tariff-driven losses, though analysts warn of potential pullbacks. Treasury yields dipped, and the Fed is expected to hold rates steady.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In economic data, the S&amp;P CoreLogic Case-Shiller Home Price Index rose 4.1% year-over-year in March, down from 4.5% in February. Meanwhile, April factory orders fell 6.3% to $296.3 billion, marking the steepest drop since January 2024.
All S&amp;P 500 sectors ended higher on Tuesday, led by strong gains in information technology, consumer discretionary, and communication services stocks.
The Dow closed higher by 1.78% at 42,343.65, the S&amp;P 500 gained 2.05% to 5,921.54, and the Nasdaq rose 2.47% to 19,199.16.
Asia Markets Today
<ul class="wp-block-list">
<li>On Wednesday, Japan's Nikkei 225 closed 0.03% higher at 37,736.00, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia's S&amp;P/ASX 200 slid 0.13%, ending the session at 8,396.90, led by losses in the Financials, Metals &amp; Mining, and Materials sectors.</li>
<li>India's Nifty 50 was down 0.33% at 24,744.70, and Nifty 500 fell 0.19% to 22,774.15.</li>
<li>China's Shanghai Composite was down 0.02% at 3,339.93, and Shanghai Shenzhen CSI 300 slid 0.08% to 3,836.24.</li>
<li>Hong Kong's Hang Seng closed the session 0.53% lower at 23,258.31.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.30%.</li>
<li>Germany's DAX index declined 0.30%.</li>
<li>France's CAC 40 fell 0.05%.</li>
<li>U.K.'s FTSE 100 index traded lower by 0.04%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 0.77% at $61.36/bbl, and Brent was up 0.66% at $63.99/bbl.</li>
<li>Oil prices held steady as the U.S. barred Chevron from exporting Venezuelan crude, while expected OPEC+ output hikes and Canadian wildfires limited price movement amid ongoing geopolitical tensions.</li>
<li>Natural gas slipped 0.48% to $3.726.</li>
<li>Gold gained 0.66% to $3,350.46, Silver rose 0.73% to $33.555, and Copper was up 0.58% to $4.7675.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow Jones futures fell 0.22%, S&amp;P 500 declined 0.20%, and Nasdaq 100 slid 0.19%.
Forex at 05:45 AM ET
The U.S. Dollar Index declined 0.04% to 99.56, USD/JPY was down 0.06% to 144.22, and USD/AUD rose 0.01% to 1.5519.
Photo via Shutterstock

Most Asia And Europe Markets Slip, Dollar Softens - Global Markets Today While US Slept

While equities hog the headlines, currency ETFs have moved in as the quiet masters of smart money, particularly during periods of macro noise such as today. Amid Japan&#8217;s <a href="https://www.benzinga.com/news/global/25/05/45613069/japans-40-year-bond-yield-nosedives-as-finance-ministry-considers-cutting-super-long-debt-issuance-report">surprise bond pivot</a> and Fed <a href="https://www.benzinga.com/25/05/45614072/feds-kashkari-urges-holding-rates-steady-amid-uncertainty-over-trump-tariffs-and-inflation-risks">policy mired in &#8220;wait-and-see,&#8221;</a> these funds are providing traders with a simple play on FX without the jargon (and leverage risk), of spot trading.
Some popular tickers in focus:
Invesco DB US Dollar Index Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) monitors the U.S. Dollar&#8217;s performance against a basket of major currencies, such as the Euro, Yen, and Pound. UUP has traditionally performed as a defensive ETF, gaining popularity during times of global uncertainty or Fed policy tightening.
Why now? With the Fed indicating no near-term cuts and global peers continuing to struggle with disinflation, the greenback might maintain its footing or even appreciate, making UUP a hedge against foreign weakness.
ProShares UltraShort Yen (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YCS#NYSE">YCS</a>): It is a leveraged ETF that attempts to return twice the inverse of the daily Japanese Yen performance. In other words, if the Yen gets weaker, YCS makes money, and some change to spare.
Why now? The potential tweak in the Japanese Ministry of Finance&#8217;s bond issuance could keep yields lower for longer, softening the Yen. Traders expecting further dovish actions from the Bank of Japan are looking at this as a turbocharged short-Yen play.
However, there is something to be kept in mind. Leveraged ETFs such as YCS are designed for short-term tactical trades. Keep them too long and compounding may be your nemesis.
WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USDU#NYSE">USDU</a>): A more global dollar play, USDU incorporates emerging market currencies into its basket instead of UUP&#8217;s G10 concentration (focused on 10 of the most heavily traded and liquid currencies).
Why now? If people anticipate a stronger dollar against majors and weaker EM currencies (thanks to China&#8217;s slowdown or geopolitical tensions), USDU is a more diversified currency hedge.
So, Why Currency ETFs Now?
Unlike the old FX market where you must have a high tolerance for risk and a forex broker, currency ETFs offer a stock-market-savvy means of playing macro themes. They can also serve as portfolio ballast when equities turn turbulent or international assets begin to lag as local currencies weaken.
These ETFs are no longer niche. They&#8217;re quick, liquid, and for tactical asset allocation in a more geopolitically complex world.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45623213/new-bobp-etf-targets-us-large-caps-using-core16s-proprietary-skewness-model">New BOBP ETF Targets US Large-Caps Using CORE16&#8217;s Proprietary Skewness Model</a></li>
</ul>
Photo: Shutterstock

Forget Stocks, These Currency ETFs Are Where Tactical Traders Can Park Their Cash

On Friday, May 23, U.S. markets closed lower as investors turned cautious ahead of the Memorial Day holiday on Monday, May 26, amid renewed trade tensions and economic uncertainty. Stocks ended the week in negative territory after President Trump reignited tariff fears by proposing steep duties on European imports. Major indexes declined, led by tech and consumer losses. Apple fell on tariff concerns, while megacaps and chipmakers also retreated amid growing market unease.
According to economic data, new single-family home sales in the U.S. rose 10.9% in April, reaching an annualized pace of 743,000 units.
Most S&amp;P 500 sectors closed lower Friday, led by sharp losses in tech, consumer discretionary, and communication stocks, while consumer staples and utilities outperformed with modest gains.
The Dow closed lower by 0.61% at 41,603.07, the S&amp;P 500 dropped 0.67% to 5,802.82, and the Nasdaq slid 1.00% to 18,737.21.
Asia Markets Today
<ul class="wp-block-list">
<li>On Tuesday, Japan's Nikkei 225 closed 0.58% higher at 37,749.00, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia's S&amp;P/ASX 200 rose 0.56%, ending the session at 8,407.60, led by gains in the IT, Financials, and Healthcare sectors.</li>
<li>India's Nifty 50 was down 0.68% at 24,828.75, and Nifty 500 fell 0.39% to 22,817.75.</li>
<li>China's Shanghai Composite was down 0.18% at 3,340.69, and Shanghai Shenzhen CSI 300 slid 0.54% to 3,839.40.</li>
<li>Hong Kong's Hang Seng closed the session 0.43% higher at 23,381.99.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was up 0.52%.</li>
<li>Germany's DAX index gained 0.91%.</li>
<li>France's CAC 40 rose 0.28%.</li>
<li>U.K.'s FTSE 100 index traded higher by 1.08%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 0.37% at $61.77/bbl, and Brent was up 0.41% at $64.36/bbl.</li>
<li>Natural gas slipped 1.72% to $3.664.</li>
<li>Gold dropped 2.04% to $3,325.59, Silver fell 1.31% to $33.17, and Copper declined 1.40% to $4.7645.</li>
<li>Gold prices slipped as President Trump delayed EU tariffs, boosting risk appetite. Stabilizing bond yields and profit-taking also pressured metals, though a weak dollar limited deeper losses.</li>
</ul>
U.S. Futures at 05:45 AM ET
<ul class="wp-block-list">
<li>Dow futures climbed 1.30%, the S&amp;P 500 gained 1.53%, and the Nasdaq 100 rose 1.74%.</li>
<li>U.S. stock futures surged Tuesday after President Trump delayed steep EU tariffs, calming trade tensions.</li>
</ul>
Forex at 05:45 AM ET
The U.S. dollar index gained 0.35% to 99.34, the USD/JPY rose 0.74% to 143.89, and the USD/AUD rose 0.53% to 1.5501.
Photo via Shutterstock

Asia Markets Mixed, Europe Gains, Dollar Strengthens On EU Tariff Delay - Global Markets Today While US Slept

With the U.S. dollar trading 15–20% above its long-term fair value, analysts at KKR &amp; Co. Inc. believe the era of dollar-fueled outperformance in U.S. assets is likely close to an end, as global investors begin shifting away from a<a href="https://www.benzinga.com/topic/expert-ideas"> decade of American exceptionalism.</a>
<h3 class="wp-block-heading">Is The US Dollar Overvalued?</h3>
While the U.S. Dollar Index (DXY)—tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>)—has dropped 9% year-to-date, the greenback still appears significantly overvalued when viewed through a long-term lens.
In its latest May&#8217;s Global Macro Trends report, KKR showed that the real effective exchange rate of the dollar now sits at a 16.6% premium, as of May 2025. 
This marks only the third time since the 1970s the greenback has crossed the 15% threshold. The last two times — in March 1985 and February 2002 — were each followed by prolonged bear markets for the dollar.
In 1985, the dollar reached a peak of 30.5% overvaluation before falling for a decade following the Plaza Accord. In 2002, the dollar peaked at 15.7% and slid into a similar long decline, eventually trading more than 13% below fair value by 2011.
While capital inflows may continue to support the dollar in the short term, KKR suggests the setup today resembles the early 2000s more than the 1980s. 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="535" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-1024x535.png" alt="" class="wp-image-927509" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-1024x535.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-300x157.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-768x401.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-1536x803.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/26093928/image-331-2048x1070.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Is This the Start of A Dollar Downcycle?</h3>
Despite notable differences from past cycles—such as stable oil prices and weaker Chinese growth—KKR analysts expect a gradual correction ahead. 
&#8220;We do not expect the next downcycle to be as rapid or pronounced as it was 20-odd years ago,&#8221; they said, &#8220;but history indicates the dollar is likely to revert to trading at a discount on a real effective exchange rate basis.&#8221;
In other words, the greenback could eventually dip below fair value and remain weak for years, unwinding its overvaluation through a long, steady slide rather than a crash.
<h3 class="wp-block-heading">What Happens If The Dollar Falls?</h3>
While a weaker dollar reduces the global purchasing power of U.S. investors, it has notable upsides. It boosts the competitiveness of American manufacturers, which can support job creation domestically. 
At the same time, it helps reduce the debt burdens of emerging markets and global corporations that hold dollar-denominated liabilities. 
Additionally, a softer dollar improves the purchasing power of consumers abroad, particularly in Europe and Asia, potentially rebalancing the global consumption dynamic that has long relied on the strength of the U.S. consumer.
This shift could relieve the U.S. consumer—long the engine of global growth—by redistributing demand more evenly across geographies.
<h3 class="wp-block-heading">Why Global Investors Are Paying Attention</h3>
KKR's latest note ties the currency discussion into broader asset allocation themes. Following April's "Liberation Day" announcement, which triggered sell-offs in both equities and bonds, CIOs and asset allocators are rethinking their U.S. exposure. Many now see dollar weakness as a structural trend that demands more geographic diversification.
"Truth be told," KKR wrote, "many investors have probably enjoyed an unsustainable run of excess U.S. returns." As the dollar normalizes, those returns may become harder to replicate—unless portfolios are rebalanced to include more non-U.S. assets.
Ultimately, KKR's view is that while the dollar won't collapse, it also won't continue to support outsized U.S. valuations forever. This could mark the start of a multi-year transition to a more balanced global investment landscape.
Read now: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45589666/30-year-treasuries-offer-contrarian-entry-point-buy-humiliation-bank-of-america-investment-strategist-says">30-Year Treasuries Offer Contrarian Entry Point: Buy &#8216;Humiliation,&#8217; Bank Of America Investment Strategist Says</a></li>
</ul>
Image: Shutterstock/Claudio Divizia

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The Dollar Is 15–20% Overvalued—And History Says It Won't Last

Federal Reserve Chair Jerome Powell delivered Princeton University&#8217;s baccalaureate address on May 25, offering the Class of 2025 his blueprint for success while defending the central bank&#8217;s independence amid ongoing political pressure.
What Happened: Powell told graduates that success requires &#8220;a combination of luck, the courage to make mistakes, and a little initiative.&#8221; The Fed chair reflected on his own uncertain path after graduating 50 years ago, when he spent six months labeling shelves in a warehouse before entering law school.
&#8220;We all move at our own pace, and that&#8217;s okay,&#8221; Powell said, emphasizing that most knowledge about work and life comes after graduation. He urged students to embrace risk-taking, noting that &#8220;if you aren&#8217;t failing from time to time, you aren&#8217;t asking enough of yourself.&#8221;
The speech comes as Powell faces renewed scrutiny over the Fed&#8217;s monetary policy decisions. President Donald Trump has <a href="https://www.benzinga.com/25/05/45579414/supreme-court-says-trump-cant-fire-jerome-powellthe-fed-a-uniquely-structured-quasi-private-entity">criticized Powell for not cutting interest rates</a> fast enough, though Trump recently stated he has &#8220;no intention&#8221; of firing the Fed chair. 
The Supreme Court recently granted Trump broader authority to remove federal agency heads but specifically exempted the Federal Reserve, calling it a &#8220;uniquely structured, quasi-private entity.&#8221;
See Also: <a href="https://www.benzinga.com/markets/bonds/25/05/45604132/10-year-yield-tops-455-despite-trumps-eu-tariff-delay-as-bond-market-signals-fiscal-concerns">10-Year Yield Tops 4.55% Despite Trump&#8217;s EU Tariff Delay As Bond Market Signals Fiscal Concerns</a>
Why It Matters: Powell highlighted a career-defining moment when initiative changed his trajectory. As a junior associate, he took the risk to approach Nicholas Brady, his firm&#8217;s leader and former U.S. senator. That brief meeting led to Powell working under Brady at the Treasury Department, ultimately opening the path to his Fed appointment.
The Fed chair stressed the importance of public service, citing the central bank&#8217;s response during the COVID-19 pandemic when &#8220;career civil servants stepped forward&#8221; to prevent economic collapse through unprecedented credit measures.
Powell concluded by emphasizing integrity as the foundation of success. &#8220;At the end of the day, your integrity is all you have,&#8221; he told graduates, urging them to pursue public service while maintaining their moral compass in an era of democratic challenges.
Image Via Shutterstock 
Read Next:
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</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Success Stories

Jerome Powell Shares His Formula For Success: 'A Combination Of Luck, The Courage...' — Here's What Else Fed Chair Told Princeton Grads

On Thursday, May 22, U.S. markets closed mixed, easing Treasury yields helped offset earlier losses tied to deficit concerns. The House passed Trump's tax and spending bill, which fulfilled key campaign promises but significantly increased the national debt. Investors remain wary of ongoing uncertainty around tariffs and interest rates, which continue to weigh on market sentiment.
In economic data, U.S. initial jobless claims fell by 2,000 to 227,000 for the week ending May 17, below expectations of 230,000. The S&amp;P Global services PMI rose to 52.3 in May from 50.8, and the manufacturing PMI also climbed to 52.3 from 50.2 in April, indicating stronger economic momentum.
Most S&amp;P 500 sectors ended lower on Thursday, led by declines in utilities, health care, and energy. Consumer discretionary and communication services outperformed, closing higher.
The Dow closed flat at 41,859.09, the S&amp;P 500 dropped 0.04% to 5,842.01, while the Nasdaq gained 0.28% to 18,925.74.
Asia Markets Today
<ul class="wp-block-list">
<li>On Friday, Japan's Nikkei 225 closed 0.42% higher at 37,140.00, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia's S&amp;P/ASX 200 rose 0.15%, ending the session at 8,360.90, led by gains in the IT, Energy, and A-REITs sectors.</li>
<li>India's Nifty 50 was up 0.99% at 24,853.10, and Nifty 500 rose 0.83% to 22,781.55.</li>
<li>China's Shanghai Composite was down 0.94% at 3,348.37, and Shanghai Shenzhen CSI 300 slid 0.81% to 3,882.27.</li>
<li>Hong Kong's Hang Seng closed the session 0.24% higher at 23,601.26.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.10%.</li>
<li>Germany's DAX index gained 0.25%.</li>
<li>France's CAC 40 fell 0.35%.</li>
<li>U.K.'s FTSE 100 index traded higher by 0.19%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading lower by 0.03% at $61.18/bbl, and Brent was down 0.03% at $64.42/bbl.</li>
<li>Natural Gas gained 1.48% to $3.301.</li>
<li>Gold was trading higher by 1.02% at $3,327.49, Silver was up 0.29% to $33.315, and Copper fell 1.02% to $4.7275.</li>
<li>Gold prices rose on safe-haven demand fueled by U.S. debt concerns and Middle East tensions.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow futures were down 0.13%, S&amp;P 500 futures declined 0.06%, and Nasdaq 100 futures fell 0.07%.
Forex at 05:45 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index declined 0.56% to 99.38, USD/JPY was down 0.47% to 143.35, and USD/AUD slid 0.83% to 1.5471.</li>
<li>The dollar fell for the week as U.S. debt concerns and Trump's tax bill spooked investors. Rising yields failed to stem outflows, boosting the euro and pressuring sentiment.</li>
</ul>
Photo via Shutterstock

Gold Up, Dollar Slides On Debt Concerns - Global Markets Today While US Slept

U.S. private sector activity accelerated sharply in May as both manufacturing and services topped forecasts, yet a surge in prices driven by tariff impacts pushed inflationary signals to levels last<a href="https://www.benzinga.com/topic/inflation"> seen in August 2022.</a>
S&amp;P Global's flash Purchasing Managers Indices (PMIs) for May painted a strong picture of U.S. economic momentum. The composite PMI rose to 52.1, a solid jump from April's 50.6 and firmly above the neutral 50 line that separates growth from contraction.
<h3 class="wp-block-heading">Confidence Rebounds, But So Do Tariff Troubles</h3>
The services PMI improved from 50.8 to 52.3 and beat forecasts of 50.8. Similarly, the manufacturing PMI rebounded from 50.2 to 52.3 and exceeded estimates of 50.1. 
Business sentiment, which had dropped to a two-and-a-half year low in April, rebounded in May to its highest level since January. 
Chris Williamson, chief business economist at S&amp;P Global Market Intelligence, said optimism was largely tied to "the pause on higher rate tariffs."
Yet, the data masked growing stress beneath the surface. Export demand continued to contract, particularly in the services sector, while supply chain delays intensified. 
Delivery times worsened to the greatest extent since October 2022. 
The inventory buildup of manufacturing inputs surged at the fastest pace in the 18-year history of the survey, as firms rushed to secure supplies ahead of potential tariff hikes once the current 90-day pause expires in July.
<h3 class="wp-block-heading">Inflation Pressure Spikes To 2022 Levels</h3>
Tariffs were the central inflationary force in May, driving prices higher at a pace unseen since August 2022. Selling prices for manufacturers posted the biggest increase since September 2022. Meanwhile, services firms raised prices at the fastest rate since April 2023.
"Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022," Williamson said. 
"Prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers."
Manufacturing input costs rose at their sharpest rate since August 2022, while service sector costs grew at their fastest pace in nearly a year. The spike reflects companies stockpiling goods and pushing through costs before the tariff moratorium ends.
<h3 class="wp-block-heading">Markets React As Inflation Concerns Rise</h3>
Financial markets responded swiftly to the dual signals of economic strength and accelerating inflation. 
The U.S. dollar index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – strengthened after several weak sessions, supported by rising expectations that the Federal Reserve will maintain its current interest rate policy for longer.
Yields on 10-year Treasuries held steady at 4.59%, while 30-year yields eased slightly to 5.11% after touching 5.15% earlier in the session.
Equity markets showed mild optimism. The S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – rose 0.3% and the tech-heavy Nasdaq 100 gained 0.8%, trimming losses from earlier in the week.
Read now: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">Trump&#8217;s Big Tax Bill Clears The House: 30-Year Yields Jump To 5.15% As Bond Market Freaks </a></li>
</ul>
Photo: Shutterstock

Government

Large Cap

Bonds

Treasuries

US Business Activity Rebounds In May, But Tariff-Fueled Inflation Surges At Fastest Pace In 3 Years

On Wednesday, May 21, U.S. markets closed lower as rising Treasury yields alarmed investors, driven by fears that Trump&#8217;s tax cuts could swell the national debt. All major indexes posted their worst losses in a month. Real estate, healthcare, and tech-led the decline. Weak bond demand and concerns over budget cuts added pressure, while Alphabet rose but Tesla and Apple slipped.
In economic data, U.S. mortgage applications fell by 5.1% for the week ending May 16, marking a drop in activity compared to the previous week.
Most S&amp;P 500 sectors fell, led by real estate, healthcare, and financials, while communication services ended higher.
The Dow fell 1.91% to 41,860.44, the S&amp;P 500 dropped 1.61% to 5,844.61, and the Nasdaq slipped 1.41% to 18,872.64.
Asia Markets Today
<ul class="wp-block-list">
<li>On Thursday, Japan&#8217;s Nikkei 225 closed 0.92% lower at 36,955.00, led by losses in the Paper &amp; Pulp, Transport and Communication sectors.</li>
<li>Australia&#8217;s S&amp;P/ASX 200 declined 0.45%, ending the session at 8,348.70, led by losses in the IT, Energy, and Consumer Discretionary sectors.</li>
<li>India&#8217;s Nifty 50 was down 0.83% at 24,605.10, and Nifty 500 fell 0.59% to 22,596.75.</li>
<li>China&#8217;s Shanghai Composite was down 0.22% at 3,380.19, and Shanghai Shenzhen CSI 300 slid 0.06% to 3,913.87.</li>
<li>Hong Kong&#8217;s Hang Seng closed the session 1.19% lower at 23,544.31.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.97%.</li>
<li>Germany&#8217;s DAX index declined 0.79%.</li>
<li>France&#8217;s CAC 40 fell 1.03%.</li>
<li>U.K.&#8217;s FTSE 100 index traded lower by 0.73%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading lower by 1.40% at $60.71/bbl, and Brent was down 1.40% at $64.00/bbl.</li>
<li>Oil prices fell as OPEC+ considered a July output hike, raising oversupply fears. U.S. crude inventories unexpectedly rose, adding pressure amid weak demand and rising Treasury yields.</li>
<li>Natural Gas declined 1.01% to $3.334.</li>
<li>Gold was trading lower by 0.12% at $3,309.20, Silver was down 0.79% to $33.380, and Copper fell 1,15% to $4.6183.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow futures were down 0.10%, S&amp;P 500 futures gained 0.09%, and Nasdaq 100 futures rose 0.18%.
Forex at 05:45 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index gained 0.19% to 99.78, USD/JPY was down 0.20% to 143.40, and USD/AUD rose 0.18% to 1.5563.</li>
<li>The U.S. dollar inched higher but remained under pressure as Trump&#8217;s tax bill advanced, raising debt concerns.</li>
</ul>
Photo via Shutterstock

Asia And Europe Markets Slide, Crude Oil Drops On OPEC+ Output Risk - Global Markets Today While US Slept

On Tuesday, May 20, U.S. markets closed lower, snapping recent winning streaks as rising Treasury yields and mounting federal debt concerns weighed on investor sentiment.
Losses were widespread, with energy and tech stocks leading the decline. Markets also reacted to Federal Reserve commentary and ongoing political discussions around tax cuts. Defensive sectors like utilities and healthcare posted gains, but overall momentum stalled amid rate uncertainty.
In economic data, the U.S. Redbook Index rose 5.4% year-over-year for the week ending May 17.
Most S&amp;P 500 sectors declined, led by energy and consumer discretionary, while utilities and healthcare outperformed.
The Dow fell 0.27% to 42,677.24, the S&amp;P 500 dropped 0.39% to 5,940.46, and the Nasdaq slipped 0.38% to 19,142.71.
Asia Markets Today
<ul class="wp-block-list">
<li>On Wednesday, Japan's Nikkei 225 closed 0.58% lower at 37,313.00, led by losses in the Paper &amp; Pulp, Transport, and Communication sectors.</li>
<li>Australia's S&amp;P/ASX 200 gained 0.52%, ending the session at 8,386.80, led by gains in the Gold, Metals &amp; Mining, and Resources sectors.</li>
<li>India's Nifty 50 was up 0.58% at 24,828.80, and Nifty 500 rose 0.72% to 22,747.20.</li>
<li>China's Shanghai Composite was up 0.21% at 3,387.57, and Shanghai Shenzhen CSI 300 was up 0.47% at 3,916.38.</li>
<li>Hong Kong's Hang Seng closed the session 0.62% higher at 23,827.78.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.43%.</li>
<li>Germany's DAX index declined 0.27%.</li>
<li>France's CAC 40 fell 0.65%.</li>
<li>The U.K.'s FTSE 100 index traded lower by 0.11%.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 1.48% at $62.96/bbl, and Brent was up 1.38% at $66.26/bbl.</li>
<li>Oil prices climbed over 1% as reports of a possible Israeli strike on Iran raised supply concerns. Tensions persist despite U.S.-Iran talks, while rising U.S. stockpiles and Kazakh output eased some pressure.</li>
<li>Natural Gas declined 1.40% to $3.380.</li>
<li>Gold was trading higher by 0.81% at $3,311.05, Silver was up 0.40% to $33.303, and Copper rose 0.10% to $4.6580.</li>
<li>Gold rose on safe-haven demand after reports of a possible Israeli strike on Iran.</li>
</ul>
U.S. Futures at 05:45 AM ET
<ul class="wp-block-list">
<li>Dow futures were down 0.70%, S&amp;P 500 futures declined 0.65%, and Nasdaq 100 futures fell 0.69%.</li>
<li>U.S. futures fell Wednesday as economic worries, trade tensions, and rising yields pressured sentiment.</li>
</ul>
Forex at 05:45 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index declined 0.37% to 99.66, USD/JPY was down 0.34% to 144.05, and USD/AUD fell 0.23% to 1.55308.</li>
<li>The dollar fell further as Trump's tax bill stalled and investor confidence in U.S. assets waned.</li>
</ul>
Photo via Shutterstock

Asia Ex-Japan Markets Up, Europe Slips, While Dollar Extends Slide - Global Markets Today While US Slept

On Monday, May 19, U.S. markets closed modestly higher, as investor sentiment dimmed following a downgrade of the U.S. credit rating due to its growing debt burden.
While equities recovered from earlier losses, gains were uneven across sectors. Energy and consumer discretionary lagged, while healthcare and industrials led advances. Treasury yields rose on debt concerns tied to a newly approved tax bill.
According to economic data, the CB Leading Index dropped 1% in April compared to the previous month.
Most S&amp;P 500 sectors rose on Monday, led by health care, consumer staples, and industrials, while energy and consumer discretionary declined.
The Dow Jones Industrial Average gained 0.32% to 42,792.07, the S&amp;P 500 rose 0.09% to 5,963.60, while the Nasdaq was up 0.02% at 19,215.46.
Asia Markets Today
<ul class="wp-block-list">
<li>On Tuesday, Japan&#8217;s Nikkei 225 closed 0.04% higher at 37,514.00, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia&#8217;s S&amp;P/ASX 200 gained 0.58%, ending the session at 8,343.30, led by gains in the IT, A-REITs, and Telecom Services sectors.</li>
<li>India&#8217;s Nifty 50 was down 1.08% at 24,674.20, and Nifty 500 fell 1.28% to 22,574.25.</li>
<li>China&#8217;s Shanghai Composite was up 0.38% at 3,380.48, and Shanghai Shenzhen CSI 300 was up 0.54% at 3,898.17.</li>
<li>Hong Kong&#8217;s Hang Seng closed the session 1.49% higher at 23,681.48.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was up 0.29%.</li>
<li>Germany&#8217;s DAX index gained 0.47%.</li>
<li>France&#8217;s CAC 40 rose 0.20%.</li>
<li>U.K.&#8217;s FTSE 100 index traded higher by 0.53%.</li>
<li>European stocks rose slightly on Tuesday, lifted by a Chinese rate cut and hopes for Ukraine-Russia peace talks. Falling German factory prices and trade optimism also supported investor sentiment.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading lower by 0.08% at $62.10/bbl, and Brent was down 0.08% at $65.49/bbl.</li>
<li>Oil prices steadied Tuesday amid uncertainty over U.S.-Iran nuclear talks and fragile Russia-Ukraine ceasefire efforts.</li>
<li>Natural Gas gained 1.54% to $3.161.</li>
<li>Gold was trading higher by 0.10% at $3,236.59, Silver was up 0.09% to $32.540, and Copper slid 0.70% to $4.6380.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow futures were down 0.20%, S&amp;P 500 futures declined 0.34%, and Nasdaq 100 futures fell 0.44%.
Forex at 05:45 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index declined 0.12% to 100.25, USD/JPY was down 0.21% to 144.53, and USD/AUD rose 0.64% to 1.5585.</li>
<li>The dollar extended its slide Tuesday, pressured by fiscal concerns, Fed caution, and uncertainty over Trump&#8217;s tax bill, which could deepen the U.S. deficit.</li>
</ul>
Photo via Shutterstock

Asia Mixed, Europe Markets Gain, Dollar Index Slips Amid Credit Rating Downgrade - Global Markets Today While US Slept

As Moody's strips the U.S. of its last AAA credit rating, financial markets and currency analysts are weighing whether the dollar's role as the world's primary reserve <a href="https://www.benzinga.com/25/05/45492889/americas-credit-strength-just-got-cut-again-should-you-panic">currency could slowly erode. </a>
Analysts across major institutions agree that Treasuries remain indispensable in global finance, and no mechanical turmoil is expected in the near term.
Yet, the downgrade's timing and symbolism—arriving amid growing fiscal deficits, political uncertainty and weakening sentiment—have amplified calls for greater diversification from dollar-denominated investments for foreign investors.
<h3 class="wp-block-heading">Dollar&#8217;s Dominance Isn't Over, But It's Under Pressure</h3>
"The link between U.S. sovereign risk, Treasuries, and the dollar is one of capital flight," said Chris Turner, analyst at ING Group. 
"Are global investors shifting their portfolios away from the U.S.?" 
He highlighted that March data from the U.S. Treasury's International Capital report showed foreign buyers added $26 billion in Treasuries, though China trimmed its holdings by $19 billion. 
Turner said upcoming TIC data for April, due mid-June, will be key to determining any real trend.
<h3 class="wp-block-heading">Downgrade Could Spark Market Volatility</h3>
According to Alejandro Cuadrado, forex strategist at BBVA, Moody's downgrade—though symbolic—arrives at a vulnerable time.
"It may act as a psychological catalyst," he said. Unlike S&amp;P's 2011 or Fitch's 2023 downgrades, this one coincides with bearish sentiment in Treasuries and rising global fiscal concern.
Cuadrado said the structural use of Treasuries in collateral systems, reserve portfolios and liquidity management remains unchanged. 
Still, "in this macro environment, the downgrade could amplify market jitters and FX volatility," he said, potentially weakening the dollar's ability to rebound after a three-month slide.
"The downgrade highlights long-term risks, including debt sustainability, which could further erode the dollar's haven appeal," George Vessey, lead macro strategist at Convera, said.
<h3 class="wp-block-heading">Time to Start Reducing Dollar Exposure?</h3>
According to UBS, the recent consolidation in the dollar following earlier weakness offers a strategic moment for reallocation.
"We believe that this provides an opportunity for investors with excess USD cash, or international investors with unhedged exposure to U.S. assets, to reduce their exposure to the U.S. dollar."
Over the long term, UBS sees further structural risks. "The trend of international diversification could lead to further dollar weakness, particularly if the Federal Reserve begins to play a more active role intervening in bond markets amid high fiscal deficits."
<h3 class="wp-block-heading">Not A Collapse For Now, Yet Caution Is Warranted</h3>
The Dollar Index (DXY) – which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – fell 0.8% on Monday, erasing gains from last week on the back of a U.S.-China trade truce.
Capital flight hasn't hit the data yet, but concerns about U.S. debt and policy are starting to grow worldwide.
For the time being, the dollar remains the anchor of global trade and finance—but the psychological buffer it once enjoyed is showing cracks, and that shift may matter more than a credit downgrade.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/bonds/25/05/45396490/peter-schiff-says-trade-truce-aside-the-world-is-losing-confidence-in-dollar-and-in-us-ability-to-put-fiscal-house-in-order">Peter Schiff Says Trade Truce Aside, The World Is &#8216;Losing Confidence&#8217; In Dollar And In US Ability To Put &#8216;Fiscal House In Order&#8217;</a> </li>
</ul>
Image created using artificial intelligence via Midjourney.

Is The Dollar's Global Reserve Role At Risk After Moody's Downgrade?

On Friday, May 16th, U.S. markets closed higher, fueled by a U.S.-China tariff truce, despite worsening consumer sentiment and surging inflation expectations. The S&amp;P 500 and Dow posted weekly gains, but extended-hours trading turned negative after Moody&#8217;s cut the U.S. credit rating. Analysts warned of continued volatility as tariff effects and unresolved tax policy loom.
In economic data, U.S. consumer sentiment slipped to 50.8 in May, down from 52.2 in April and below the expected 53.4. U.S. import and export prices rose 0.1% in April, defying expectations of declines and rebounding from previous drops.
Most S&amp;P 500 sectors rose, led by health care, utilities, and real estate, while energy stocks closed lower.
The Dow Jones Industrial Average gained 0.78% to 42,654.74, the S&amp;P 500 rose 0.70% to 5,958.38, while the Nasdaq was up 0.52% at 19,112.32.
Related: <a target="_blank" href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns" rel="noreferrer noopener">Moody&#8217;s Downgrades U.S. Credit Rating Over Debt, Deficit Concerns</a>
Asia Markets Today
<ul class="wp-block-list">
<li>On Monday, Japan&#8217;s Nikkei 225, closed 0.74% lower at 37,473.50, led by losses in the Paper &amp; Pulp, Transport and Communication sectors.</li>
<li>Australia&#8217;s S&amp;P/ASX 200 declined 0.58%, ending the session at 8,295.10, led by losses in the Energy, Resources, and Metals &amp; Mining sectors.</li>
<li>India&#8217;s Nifty 50 was down 0.36% at 24,929.20, and Nifty 500 fell 0.09% to 22,850.70.</li>
<li>China&#8217;s Shanghai Composite was flat 0.00% at 3,367.58 and Shanghai Shenzhen CSI 300 was down 0.31% at 3,877.15.</li>
<li>Hong Kong&#8217;s Hang Seng closed the session 0.05% lower at 23,332.72.</li>
</ul>
Eurozone at 06:00 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.74%.</li>
<li>Germany&#8217;s DAX index declined 0.15%.</li>
<li>France&#8217;s CAC 40 slid 0.72%.</li>
<li>The U.K.&#8217;s FTSE 100 index traded lower by 0.61%.</li>
</ul>
Commodities at 06:00 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading lower by 0.68% at $61.55/bbl, and Brent was down 0.67% at $64.97/bbl.</li>
<li>Oil prices dipped as Moody&#8217;s U.S. credit downgrade and weak Chinese data raised demand concerns.</li>
<li>Natural Gas declined 2.58% to $3.250.</li>
<li>Gold was trading higher by 1.74% at $3,242.66, Silver was up 1.02% to $32.685, and Copper rose 0.78% to $4.6290.</li>
</ul>
U.S. Futures at 06:00 AM ET
Dow futures were down 0.79%, S&amp;P 500 futures declined 1.17%, and Nasdaq 100 futures fell 1.60%.
Forex at 06:00 AM ET
<ul class="wp-block-list">
<li>The U.S. Dollar Index declined 0.88% to 100.20, USD/JPY was down 0.49% to 144.90, and USD/AUD slid 0.61% to 1.5522.</li>
<li>The U.S. dollar fell Monday, hitting a 10-day low against the yen, after Moody&#8217;s downgraded the U.S. credit rating, and rising trade tensions clouded investor sentiment.</li>
</ul>
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45488403/moodys-had-an-investment-grade-rating-on-us-debt-during-2008-global-financial-crisis-recent-cut-not-a-huge-shock-says-expert" target="_blank" rel="noreferrer noopener">Moody&#8217;s Had An Investment Grade Rating On US Debt During 2008 Global Financial Crisis: Recent Cut &#8216;Not A Huge Shock,&#8217; Says Expert</a></li>
</ul>
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Asia And Europe Markets Dip, Dollar Slips After US Credit Downgrade - Global Markets Today While US Slept

The University of Michigan&#8217;s May consumer survey delivered a jarring message to Wall Street and policymakers: sentiment among American consumers has plunged to the lowest levels since June 2020, while expectations for inflation surged to heights last seen <a href="https://www.benzinga.com/news/econ-s">during the early 1980s.</a>
The preliminary Consumer Sentiment Index dropped to 50.8 in May, down from 52.2 in April and missing economists' forecasts of 53.4. The gauge is now 27% lower than it was a year ago, signaling deepening anxiety among households despite the recent 90-day pause on tariffs.
<h3 class="wp-block-heading">Expectations Sink To 1980 Lows, Inflation Fears Echo 1981</h3>
The subindex for Current Economic Conditions declined to 57.6 from 59.8 in April, while the Consumer Expectations subindex – a measure of forward-looking sentiment – dipped further from 47.3 to 46.5. 
That reading marks the weakest since May 1980, worse even than the worst moments of the 2008 financial crisis and the early Covid-19 pandemic.
"Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April," said Joanne Hsu, director of the Surveys of Consumers. "Uncertainty over trade policy continues to dominate consumers' thinking about the economy."
The data was gathered between April 22 and May 13, closing two days after the White House announced a trade truce with Chine, leaving room for potential revision of the data. 
&#8220;The final release for May will reveal the extent to which the pause on some China tariffs leads consumers to update their expectations,&#8221; Hsu added.
Year-ahead inflation expectations jumped sharply from 6.5% in April to 7.3% in May, the highest reading since November 1981. 
Long-term inflation expectations over the next five years also climbed to 4.6%, up from 4.4%, reaching levels last seen in March 1991.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="531" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-1024x531.png" alt="" class="wp-image-918032" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-1024x531.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-300x156.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-768x399.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-1536x797.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/16102239/image-201-2048x1063.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Markets react: Dollar Rises, Equities Erase Gains</h3>
Investors interpreted the inflation surge as a headwind to future interest rate cuts. 
The U.S. dollar, which had opened weaker, reversed course after the data. The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), which tracks the dollar's strength, climbed 0.2% by 10:15 a.m. ET.
Stocks turned mixed as inflation fears resurfaced. 
The S&amp;P 500 erased early gains, while the Dow Jones Industrial Average and small-cap benchmark Russell 2000 both flipped to the red. Only the Nasdaq 100 managed to stay positive, up 0.2% at last check.
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Image created using artificial intelligence via Midjourney.

Consumer Sentiment Crashes To 5-Year Lows As Inflation Fears Reach 1981 Levels

On Thursday, May 15, U.S. markets closed mixed as Cisco rose on strong guidance linked to AI demand, while UnitedHealth fell sharply after reports of a criminal Medicare fraud probe. Amazon and Walmart slipped amid tariff concerns. Investors remain optimistic about potential trade deals, though inflation data stayed soft and companies continue to pull forecasts due to uncertainty.
In economic data, U.S. jobless claims held steady at 229,000 for the week ending May 10. April retail sales rose just 0.1%, down from March's revised 1.7% gain. Producer prices fell 0.5% in April, missing expectations for a 0.2% rise.
The Dow Jones Industrial Average gained 0.65% to 42,322.75, the S&amp;P 500 rose 0.41% to 5,916.93, while the Nasdaq declined 0.18% to 19,112.32.
Asia Markets Today
<ul class="wp-block-list">
<li>On Friday, Japan's Nikkei 225 closed 0.01% higher at 37,757.50, led by gains in the Real Estate, Banking, and Textile sectors.</li>
<li>Australia's S&amp;P/ASX 200 gained 0.56%, ending the session at 8,343.70, led by gains in the Gold, A-REITs, and Metals &amp; Mining sectors.</li>
<li>India's Nifty 50 was down 0.16% at 25,023.70, and Nifty 500 rose 0.38% to 22,874.90.</li>
<li>China's Shanghai Composite declined 0.40% to 3,367.46, and the Shanghai Shenzhen CSI 300 was down 0.46% to 3,889.09.</li>
<li>Hong Kong's Hang Seng closed the session 0.46% lower at 23,345.05.</li>
</ul>
Eurozone at 05:45 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was up 0.61%.</li>
<li>Germany's DAX index gained 0.80%.</li>
<li>France's CAC 40 rose 0.70%.</li>
<li>The U.K.'s FTSE 100 index traded higher by 0.62%.</li>
<li>European stocks rose, capping a strong week driven by upbeat earnings and a U.S.-China trade truce, while low oil prices and soft U.S. data supported global markets and bonds.</li>
</ul>
Commodities at 05:45 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading higher by 0.06% at $61.65/bbl, and Brent was up 0.08% at $64.58/bbl.</li>
<li>Natural Gas declined 0.48% to $3.346.</li>
<li>Gold was trading lower by 0.41% at $3,212.94, Silver was down 0.81% to $32.423, and Copper fell 1.49% to $4.6145.</li>
</ul>
U.S. Futures at 05:45 AM ET
Dow futures were up 0.33%, S&amp;P 500 futures gained 0.22%, and Nasdaq 100 futures rose 0.22%.
Forex at 05:45 AM ET
The U.S. Dollar Index declined 0.07% to 100.74, USD/JPY was down 0.08% to 145.54, and USD/AUD slid 0.22% to 1.5576.
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Asia Markets Mixed, Europe Advances, Dollar Pressured By Soft US Inflation Data - Global Markets Today While US Slept

Federal Reserve Chair Jerome Powell said Thursday that the central bank is rethinking its approach to inflation and employment, signaling possible changes to the Fed's policy strategy as part of a major <a href="https://www.benzinga.com/news/econ-s">review underway in 2025.</a>
&#8220;Participants have indicated that they thought it would be appropriate to reconsider the language around [labor market] shortfalls,&#8221; Powell said, referring to how the Fed talks about employment in its official strategy. 
Powell also highlighted that &#8220;at our meeting last week, we had a similar take on average inflation targeting,&#8221; hinting that the policy introduced in 2020 may be revised or dropped.
<h3 class="wp-block-heading">What's Changing And Why?</h3>
In 2020, the Fed adopted a strategy to let inflation run slightly above 2% after years of staying too low. That policy, known as average inflation targeting, was meant to boost job growth and better support the economy in downturns.
But just months later, inflation surged far beyond the Fed's expectations, hitting a peak of 7.2% in 2022. The Fed had to respond aggressively, raising interest rates by 5.25 percentage points in just 16 months. Now, Powell says the economic landscape has changed and the old approach may no longer fit.
In April 2025, inflation measured by the Fed's preferred gauge—the personal consumption expenditures index—was down to 2.2%.
 That's close to the Fed's goal and, Powell noted, "without the sharp increase in unemployment" that often comes with rate hikes. This success may be pushing the Fed to rethink whether it still needs the average inflation policy.
<h3 class="wp-block-heading">Better Communication In Focus</h3>
Powell also acknowledged that the Fed needs to do a better job explaining its outlook and the risks it sees. He said the central bank is looking at ways to improve how it communicates uncertainty around economic forecasts.
"Clear communication is an issue even in relatively placid times," he said. He added that in today's more volatile world—where shocks happen more often—it&#8217;s even more important to help the public understand that forecasts can change.
<h3 class="wp-block-heading">What Happens Next?</h3>
Powell said the Fed will finish its policy review in the coming months. The updated strategy will replace the one adopted in 2020 and is expected to shape how the Fed responds to future economic challenges.
While some core elements will stay—like the 2% inflation target—others, like the language around employment and inflation overshooting, may be rewritten.
For now, Powell made it clear that anchoring inflation expectations—keeping public confidence that prices will remain stable—is still the Fed's top priority. "We remain fully committed to the 2 percent target today," he said.
<h3 class="wp-block-heading">Market Reactions: Dollar Rebounds, Yields Hover Near 5% After Powell Speech</h3>
Markets showed a mixed response to Powell's comments, with the U.S. dollar bouncing back while Treasury yields remained elevated and tech stocks took a breather.
The U.S. Dollar Index, as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose to 100.8, trimming earlier losses triggered by weaker-than-expected retail and producer price data <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45435725/tariffs-slow-retail-spending-as-producer-prices-post-sharpest-drop-since-2020">released earlier in the day.</a>
Meanwhile, 30-year Treasury yields briefly touched the 5% threshold, reflecting market expectations that interest rates will remain elevated. Yields later eased slightly to 4.98% as investors digested Powell's remarks on the Fed's evolving policy stance.
Nasdaq 100 futures were flat, stabilizing after a three-day winning streak, as traders weighed the potential implications of a policy framework revision and a slower-than-expected inflation path.
Traders currently assign just an 8% probability of a 25-basis-point rate cut at the June FOMC meeting, according to CME FedWatch Tool data. The likelihood of easing increases further out, with markets fully pricing in a rate cut by September 2025.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Fed Chair Powell &#x7C; Thomas Laubach Research Conference &#x7C; May 15, 2025" width="500" height="281" src="https://www.youtube.com/embed/O9tcyZq4aGU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
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<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45435725/tariffs-slow-retail-spending-as-producer-prices-post-sharpest-drop-since-2020">Tariffs Slow Retail Spending As Producer Prices Post Sharpest Drop Since 2020</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Powell Signals Fed May Shift Inflation Strategy After 5 Years Of Economic Upheaval

April retail sales data showed that the <a href="https://www.benzinga.com/topic/tariffs">round of tariffs</a> announced by President Donald Trump on &#8220;Liberation Day&#8221; started to produce their effects by reducing household consumption.
However, while households reined in spending, inflationary pressures at the producer level unexpectedly contracted in April, notching the biggest decline since April 2020 and highlighting the disinflationary impact of tariffs on input costs across industries.
U.S. retail sales grew only by 0.1% in April from the previous month, a report from the Census Bureau showed Thursday. The outcome marks a sharp reversal from March's upwardly revised 1.7% gain, yet slightly topped economist expectations of no change.
A relevant drag came from motor vehicles and parts which contracted by 0.1%. In March, auto-related sales jumped 5.5% as consumers rushed to buy before tariffs took effect. 
Stripping out autos, retail sales also rose 0.1%, a slowdown from March's 0.8% increase and below the 0.3% consensus. 
When excluding both gasoline and autos, the figure improves slightly to a 0.2% rise, though it still marks a deceleration from March's 1.1% growth.
On an annual basis, April retail sales were up 5.2% from a year earlier, unchanged from March.
<h3 class="wp-block-heading">Tariffs Slash Producer Prices</h3>
The Producer Price Index fell 0.5% month over month, marking the sharpest decline since April 2020. This was a steep reversal from March's flat reading and missed economists&#8217; expectations for a 0.2% increase.
On a year-over-year basis, producer inflation cooled to 2.4%, down from 3.1% in March and undercutting forecasts of 2.5%.
&#8220;The April decline in the index for final demand is attributable to prices for final demand services, which decreased 0.7%,&#8221; the Bureau of Labor Statistics said.
More than 40% of April's drop in the final demand services index stemmed from a 6.1% decline in margins for machinery and vehicle wholesaling. Additional declines were recorded in portfolio management, food and alcohol wholesaling, system software publishing, traveler accommodations, and airline passenger services.
Core producer prices, which exclude food and energy, dropped 0.4% on the month, wiping out the previous month's 0.4% gain and coming in well below the 0.3% estimate. 
On an annual basis, core PPI rose 3.1%, easing from 4% in March but in line with consensus.
<h3 class="wp-block-heading">Market Reaction: Yields Rise, Stocks Slip</h3>
U.S. stock futures pulled back after a three-day rally. By 8:40 a.m. ET, futures on the S&amp;P 500 were down 0.3%, while Nasdaq 100 futures fell 0.4%.
Meanwhile, the U.S. Dollar Index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – fell to 100.7 levels. 
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Image created using artificial intelligence via Midjourney.

Tariffs Slow Retail Spending As Producer Prices Post Sharpest Drop Since 2020

On Wednesday, May 14, U.S. markets closed mixed. The S&amp;P 500 closed slightly higher after a quiet session, with investors awaiting economic data following gains earlier in the week tied to easing inflation and a U.S.-China tariff pause.
Tech stocks rose on AI deals in the Middle East, while trade uncertainty and Fed signals kept markets cautious. The Dow slipped, and the Nasdaq advanced.
In economic data, U.S. mortgage applications rose slightly in the week ending May 9, up 1.1% from the previous week, easing after an 11% jump the week before.
Most S&amp;P 500 sectors fell Wednesday, led by losses in health care, materials, and real estate, while tech and communication stocks gained.
The Dow Jones Industrial Average declined 0.21% to 42,051.06, the S&amp;P 500 gained 0.10% to 5,892.58, and the Nasdaq surged 0.71% to 19,146.81.
Asia Markets Today
<ul class="wp-block-list">
<li>On Thursday, Japan's Nikkei 225 closed 0.88% lower at 37,793.00, led by losses in the Paper &amp; Pulp, Transport, and Communication sectors.</li>
<li>Australia's S&amp;P/ASX 200 gained 0.22%, ending the session at 8,297.50, led by gains in the IT, Financials, and Consumer Discretionary sectors.</li>
<li>India's Nifty 50 was up 1.52% at 25,044.25, and Nifty 500 rose 1.24% to 22,777.70.</li>
<li>China's Shanghai Composite declined 0.68% to 3,380.82, and Shanghai Shenzhen CSI 300 was down 0.91% at 3,907.20.</li>
<li>Hong Kong's Hang Seng closed the session 0.79% lower at 23,453.16.</li>
</ul>
Eurozone at 06:00 AM ET
<ul class="wp-block-list">
<li>The European STOXX 50 index was down 0.49%.</li>
<li>Germany's DAX index declined 0.10%.</li>
<li>France's CAC 40 fell 0.22%.</li>
<li>The U.K.'s FTSE 100 index traded higher by 0.08%.</li>
</ul>
Commodities at 06:00 AM ET
<ul class="wp-block-list">
<li>Crude Oil WTI was trading lower by 3.71% at $60.81/bbl, and Brent was down 3.50% at $63.81/bbl.</li>
<li>Oil prices plunged nearly 4% on hopes of a U.S.-Iran nuclear deal that could boost supply, while global stocks paused after a rally driven by trade truce optimism and Middle East deals.</li>
<li>Natural Gas declined 0.23% to $3.486.</li>
<li>Gold was trading lower by 0.34% at $3,177.70, Silver was down 0.64% to $32.230, and Copper fell 0.53% to $4.6263.</li>
</ul>
U.S. Futures at 06:00 AM ET
Dow futures were down 0.31%, S&amp;P 500 futures declined 0.49%, and Nasdaq 100 futures fell 0.67%.
Forex at 06:00 AM ET
The U.S. Dollar Index declined 0.28% to 100.79, USD/JPY was down 0.55% to 145.87, and USD/AUD rose 0.22% to 1.5589.
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