The US dollar continues to show remarkable strength this summer, remaining about 13% stronger than in 2021, thanks to various factors including the latest presidential polling results favoring former President Donald Trump. Should Trump win in November, the market anticipates an expansion of tax cuts and increased tariffs, potentially boosting the dollar even higher. The economic recovery in the US compared to struggling economies in Europe and Asia is also contributing to the dollar’s rise.
Despite the positive effects for US tourists traveling abroad, the strong dollar poses challenges for large multinational companies in the S&P 500. While the stock market has been climbing, investors are mindful of the potential consequences of proposed policies, such as tax cuts and tariffs. Analysts foresee a strong dollar hindering multi-international corporations, while smaller domestic companies stand to benefit.
Boeing has also made headlines recently, agreeing to plead guilty to a charge of conspiracy to defraud the United States in relation to two fatal 737 Max crashes. The Justice Department announced that Boeing will pay up to $487 million in fines, a fraction of what the families of crash victims had sought. Despite the guilty plea, families of the victims remain unsatisfied and continue to oppose the deal. The agreement will also require Boeing to operate under the oversight of an independent monitor for three years, following a series of safety blunders and questions about the company’s reputation.
