A WEAKER DOLLAR WON’T DERAIL STOCKS, SAYS JPMORGAN Investors worry that currency swings could hit equities. But analysts at JPMorgan Chase & Co. argue the opposite: a softer U.S. dollar should support stocks, not hurt them. Despite recent volatility in commodities, bonds and crowded trades, economic momentum remains solid. Fed futures now price in roughly 55 basis points of rate cuts by year-end, reinforcing a supportive backdrop for risk assets. The bank takes a bearish view on the dollar. Historically, dollar weakness has aligned with stronger equities — especially in emerging markets, where stocks tend to move closely with FX. JPMorgan is maintaining its bullish call on EM and commodity equities, advising investors to buy dips in metals. In Europe, a stronger euro can weigh on earnings translation, since about 25% of revenues are dollar-based. However, JPMorgan notes that stronger growth during euro appreciation has often offset that drag. Cyclical sectors, in particular, have typically risen alongside the euro. Bottom line: a softer dollar is more tailwind than threat for global equities.