Market Prep: Tech Earnings & USD
$TSLA - $MSFT - $META Flow Analysis
Hello Traders,
The US Dollar Index is currently testing a critical 15-year trendline (the support channel stretching back to 2011).
The Pivot Point: Analysts are watching the 96.00 – 98.00 level on the DXY. A sustained break below 96.00 would signal the end of a multi-year era of “US Dollar Exceptionalism.”
The Nasdaq is heading toward record highs isn’t just about AI hype anymore; it’s about a favorable FX translation.
Earnings Boost: For mega-cap tech companies (which often generate 40–50% of revenue overseas), a weaker dollar makes their products cheaper abroad and makes foreign profits “worth more” when converted back into USD.
The AI Multiplier: Companies like Nvidia and Microsoft are seeing a “double tailwind”: massive capital expenditure into AI infrastructure and a weakening dollar that protects their margins.
Record Targets: Strategists at Morgan Stanley and J.P. Morgan are eyeing a 2026 target for the S&P 500 near 7,500, driven by an expected 13–15% earnings growth—much of which is supported by these currency dynamics.
Now let’s take a look at how traders are positioned for the most awaited earnings this week:
