"Dollar's Strength Sparks Global Stock Market Concerns"

The US dollar is expected to strengthen against the euro and other major currency pairs due to diverging paths between the Fed and ECB, leading to tighter financial conditions and impacting multinational companies' earnings. Widening spreads between central banks and rising interest rates could drive the euro lower and affect other currency pairs. This may result in a contraction of the S&P 500's PE ratio and impact equity valuations, potentially leading to a much lower path for the index.