The Falling U.S. Dollar Index Saves The Day
The major stock market indexes have all rallied back higher this afternoon as the U.S. Dollar Index(DXY) makes new intra-day lows. When the U.S. Dollar Index declines it will help to inflate most stocks and commodities higher. This inverse correlation to the dollar has been going on for years now. Yesterday, the U.S. Dollar Index rallied higher by nearly a full point and the Dow Jones Industrial Average declined by 144.00 points. You can easily see how it works.
Many leading commodity stocks such as Freeport McMoRan Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) have all rallied higher on the back of the declining U.S. Dollar Index. Most energy stocks will usually inflate higher as the U.S. Dollar Index sells off or declines. Leading energy stocks such as Chevron Corp.(NYSE:CVX), Exxon Mobil Corp.(NYSE:XOM), and ConocoPhillips(NYSE:COP) are benefiting from today's dollar decline.