The US dollar is strengthening as investors dump technology stocks, reviving a market dynamic that had faded in recent months.
The move suggests traders are once again treating equity weakness as a signal to seek safety in the greenback, rather than viewing the two asset classes as decoupled.
US equity futures are trading lower ahead of the Wall Street open, with the decline concentrated in the technology sector.
Investors are reducing exposure to high-growth names, driving selling pressure that is broadening across the market.
This rotation is providing a tailwind for the dollar, which benefits from the flight-to-safety flows accompanying the equity downturn.
The shift in market behavior comes at a sensitive time, with the Federal Reserve's upcoming policy meeting on the horizon.