Strong Dollar Keeps Climbing… And The Outlook For The Pharma Trade 10/5/26

Despite a surging dollar and rising yields that typically pressure equities, traders argue concentrated mega-cap tech is absorbing flight-to-quality flows.

• Dollar and rates surge together: Dollar index hit highest since April 2025 on France's budget crisis and a hawkish "Warsh Fed" focus on inflation; 10-year Treasury hit a 24-year high with the 2s10s spread widest since August.
• Tech as the flight-to-quality trade: QQQs have outperformed the S&P by ~6% since September 15; NVIDIA hit a record high at 17x forward earnings, viewed by Tim Seymour and Citi's JP Coviello as a "no-brainer" given 27% expected quarterly earnings growth.

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