Dollar Index (DXY) vs S&P 500
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
Dollar strength has mixed effects on US equities. A strong dollar pressures multinational earnings but attracts foreign capital. When both SPY and the dollar rise together, US exceptionalism is the dominant narrative. When they diverge, either dollar weakness is helping earnings (SPY up, dollar down) or dollar strength reflects safe-haven demand in risk-off (SPY down, dollar up).
Cross-Asset Analysis
Trade-Weighted Dollar (Broad) measures broad trade-weighted US dollar index, measures dollar strength vs major trading partners, while S&P 500 ETF (SPY) measures SPDR S&P 500 ETF, tracks the benchmark US equity index; tracking the two side by side turns that distinction into a tradable signal for the cross asset pair relationship. Implied volatility regimes in Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) transmit through hedging flows that connect one venue to the other via dealer balance sheets. Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) sit in different asset classes, and the relationship between them encodes cross-asset macro dynamics that neither alone can express.
Watching Trade-Weighted Dollar (Broad) alongside S&P 500 ETF (SPY) offers insight into how macro factors flow across different parts of the global market structure. Leverage embedded in the paired markets behind Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) transmits the same shock at different magnitudes. Policy-driven transitions inject sudden repricing into the Trade-Weighted Dollar (Broad)-S&P 500 ETF (SPY) relationship because the two markets react to policy guidance on different timescales.
Risk-off regimes tighten correlations and push the Trade-Weighted Dollar (Broad)-S&P 500 ETF (SPY) spread into narrower ranges. Cross-asset pairs like Trade-Weighted Dollar (Broad) against S&P 500 ETF (SPY) reveal the macro variables that span asset classes: liquidity, inflation, real rates, and risk appetite.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY)?+
Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) are connected through shared macro drivers across asset classes. When the dominant macro driver shifts, both respond, though with different sensitivities and at different speeds. The spread between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) captures the specific macro signal that flows through this relationship.
When does Trade-Weighted Dollar (Broad) typically lead S&P 500 ETF (SPY)?+
Trade-Weighted Dollar (Broad) tends to lead S&P 500 ETF (SPY) during macro regime changes, where the more liquid asset moves first. In those periods, moves in Trade-Weighted Dollar (Broad) precede corresponding moves in S&P 500 ETF (SPY) by days to weeks, depending on the transmission channel and the depth of each market.
How are Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) historically correlated?+
Long-run correlation between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) varies by regime. Cross-asset correlations vary by regime, tending to tighten in stress and loosen during normal conditions. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Trade-Weighted Dollar (Broad)-S&P 500 ETF (SPY) relationship.
What macro conditions drive divergence between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY)?+
Divergence between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) typically arises from idiosyncratic shocks in one asset, policy interventions, or structural shifts in demand. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Trade-Weighted Dollar (Broad) or S&P 500 ETF (SPY).
Is Trade-Weighted Dollar (Broad) a hedge for S&P 500 ETF (SPY)?+
Cross-asset hedges between Trade-Weighted Dollar (Broad) and S&P 500 ETF (SPY) work when the macro drivers of the two assets are sufficiently decorrelated, which depends on the regime and therefore needs to be reviewed as conditions change. Effective hedging requires matching the hedge to the specific risk being protected, and the Trade-Weighted Dollar (Broad)-S&P 500 ETF (SPY) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.