USD flows: Watching U.S. Tech

Since the SP500 rally has become very narrow and driven by Nvadia and Microsoft, some FX traders are wonder whether this means a choppier phase for U.S. tech stocks that could see investors rotating elsewhere, which could soft the USD if it become a bigger theme.  The tech sector is certainly due a corrective pullback after the scale of the rally since early 2023 and as valuations are at the upper end of experience in the last 20 years.  However, valuations are not 2000 type extremes, while tech corporate earnings are strong.  Chat GPT5 is also due for release over the summer, which could lift AI hopes again.  For now this looks like a healthy correction in tech, which could cause a modest S&P500 correction and soft the USD modestly in the quiet summer period before the next U.S. employment report July 5.