Weak Dollar Splits Wall Street: Multinationals Pull Ahead

The US dollar is experiencing its worst year since the early 2000s, dropping nearly 10% against major global currencies. This decline has fueled gains for multinational corporations with significant foreign revenues. Goldman Sachs’ index of top US companies with the highest overseas exposure has surged 21% this year, hitting a new high and outperforming the S&P 500.

Source Financial Times

Meanwhile, domestically focused companies have struggled. Shares of firms such as T-Mobile US and Target have risen only 5%, as they failed to benefit from the weaker dollar while facing higher import costs. The performance gap between multinationals and domestic-focused firms is now the widest since 2009.

Analysts note that the weaker dollar boosts foreign earnings for US companies while making American products cheaper abroad. The biggest winners include technology giants like Microsoft and Meta, as well as tobacco and industrial producers capitalizing on stronger global demand.