Wilson, chief equity strategist at Morgan Stanley, calculated in a report on Monday that for every 1% gain on the ICUS dollar index, the impact on S&P 500 earnings will be negative 0.5%.

An Wall Street analyst who closely monitors the dollar's trend has warned that the continued surge in the dollar is raising concerns about corporate earnings. He pointed out that historically, similar performance of the US dollar has led to some kind of financial or economic crisis.

Morgan Stanley chief equity strategist Wilson calculated in a report on Monday that for every 1% increase in the ICC dollar index , the impact on S&P 500 returns will be negative 0.5%. Wilson is one of Wall Street's most aggressive bearish players, who correctly predicted the decline in stocks this year. He also believes that earnings growth will face about 10% resistance in the fourth quarter.

Intercontinental Exchange dollar index rose 0.9% to 114.27 on Monday after the UK government announced that it would implement tax cuts and investment incentives to boost economic growth, with the pound falling to an all-time low against the dollar. The index measures the strength of the US dollar against a basket of currencies. Dow Jones market data showed that the U.S. dollar index rose 22.4% from the same period last year.

, the strategist led by Wilson, wrote: "The recent trend of the dollar has brought unsupported situations to risky assets, which have historically ended with financial or economic crises or both." "While it is difficult to predict such events, the conditions for such events are already in place, which will help accelerate the end of the current bear market. (See table below)

, analysts also predict that the U.S. dollar index is targeted at 118 by the end of the year, and "no sign of relief."

" In our opinion, this result is exactly how something breaks, which will lead to a significant top of the dollar and interest rates," the strategist wrote.

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U.S. stock markets continued their recent decline on Monday, with the Dow Jones Industrial Average expected to close with a bear market. The S&P 500 fell 0.6% to 3,673 points, and fell below its June 16 closing low of 3,666.77 last Friday, but ended up above that level. The Dow Jones Industrial Average fell 0.8%, and the Nasdaq Composite Index was basically flat.

According to analysts, the bear market in the stock market is far from over before the broad market index reaches its target range of 3,000-3,400 points later this fall or early next year.

This article is from the financial industry