USD Index Under Pressure as US Stock Pullback Exposes Rally Fragility

The US dollar faces mixed signals as a sharp pullback in US equities, including the Dow Jones Industrial Average and tech names like Marvell Technology, highlights the fragility of the recent record rally. The risk-off shift has prompted investors to reassess positioning across asset classes, with WTI crude oil futures also factoring into the broader macro picture. The equity selloff suggests that market participants are growing cautious about stretched valuations and potential Fed policy recalibration, which could weigh on the greenback if risk appetite continues to deteriorate. Dollar-denominated assets may see reduced inflows as portfolio managers rotate toward safe havens such as the Japanese yen and Swiss franc. Key support for the US Dollar Index sits near the 104.00 psychological level, with resistance around 104.80. Traders should monitor upcoming US economic data releases and Fed commentary for directional cues, as equity volatility often spills over into currency markets and could amplify USD moves in either direction.