Dollar Slide Cancels Stock Rally

The article notes the U.S. dollar is about 10% weaker this year, offsetting much of the S&P 500’s gains for foreign investors. With profits flat and investment down, it argues widespread market rallies reflect liquidity and dollar hedging rather than AI-driven productivity. This reframes the risk as future costs from U.S. deficit-fueled spending and currency weakness. — It challenges a dominant narrative about AI-led prosperity by emphasizing currency-adjusted returns and fiscal-driven liquidity as the true drivers of asset prices.