Yes, they can, foreigners looking for stability will move money into the US stock market, they win on both ends, gains from the dollar and via the stock market. For now, the US will continue to rule the roost.
As you can see, there are many occasions where the Dow and the dollar have rallied in tandem (green lines represent uptrends in the dollar). The dollar is currently consolidating, as we stated. Once this consolidation is over, the next rally should be even more robust, and it should eventually trade on par with the Euro.
The way the US is going to win the war with China and the EU is by offering everything that both those nations can’t. They have the cream of the crop when it comes to AI-based Technologies, a strong currency, strongest army and let’s not forget the USD is the world’s reserve currency. So bottom line, the dollar can and will trend in tandem with the US stock market and in doing so it will attract billions and eventually trillions of dollars of capital from the outside. The Fed has also fingered the rest of the world, by keeping rates higher than the other major players out there (EU, Japan, etc.), they now hold the upper hand in the race to the bottom currency wars that are gaining traction today.
Other Articles of Interest