Haven Dollar Makes Comeback as a Hedge to the Stock Market

The dollar and US stocks are at their most inversely correlated in nearly a year, reasserting the typical relationship between the assets associated with the greenback’s haven status.

A Bloomberg gauge of the dollar is up nearly 2% since war broke out in the Middle East late last month, while the S&P 500 Index is down more than 2%. That’s brought one measure of the short-term correlation between the two to its most negative since early 2025.