USD Steady as US Stocks Close Marginally Higher Amid Sector Rotation

US equity markets closed with modest gains on Monday, with the Russell 2000 leading at +0.33%, followed by the Dow and S&P 500 both rising 0.19%, and the NASDAQ edging up 0.10%. The session was characterized by a sharply bifurcated market tone, as investors rotated into technology, commodity, and infrastructure-related stocks while selling consumer, retail, travel, and high-growth momentum names. This risk-on but selective equity environment provided mild support for the US dollar, as the measured gains suggest cautious optimism rather than aggressive risk appetite. The sector rotation into commodities and infrastructure may signal expectations of persistent inflation or fiscal spending, factors that could influence Federal Reserve policy expectations and keep USD supported in the near term. For forex traders, the muted equity rally suggests limited volatility impulse for USD pairs, with USD/JPY and EUR/USD likely to remain range-bound absent fresh catalysts. Traders should monitor upcoming US economic data releases for directional cues, as the current equity backdrop offers no strong conviction for dollar bulls or bears.