Dollar no haven in a tech selloff
QQQ•The dollar weakened as technology stocks fell, with Nasdaq 100 futures down 2% and the STOXX down 0.1%. Deutsche Bank’s George Saravelos said the dollar may not provide a safe haven during an AI-driven market correction.
1. Dollar and tech stocks fall
The dollar weakened as technology stocks sold off, with Nasdaq 100 futures down 2% and the STOXX down 0.1%. Saravelos said investors cannot take the dollar’s risk-off properties for granted in an AI-driven correction.
2. Hedging implications
Saravelos said a weaker dollar alongside falling technology stocks could add to losses for foreign holders of U.S. assets and encourage shifts in equity hedging. He compared the potential behavior with the sharp dollar decline in early 2025, when hedging behavior changed.
