The correlation between the S&P 500 and the U.S. dollar (USD) after Federal Reserve rate cuts depends on investor sentiment, capital flows, and economic conditions. Typically, a rate cut weakens the dollar by reducing yields on U.S. assets, making them less attractive to foreign investors. A weaker dollar can boost the S&P 500, particularly for multinational companies that generate significant revenue overseas, as their foreign earnings increase when converted back to USD. However, the relationship is not always straightforward. If rate cuts signal economic weakness or rising recession risks, investors may flock to the dollar as a safe-haven asset, potentially strengthening it despite lower interest rates. In such cases, the S&P 500 might struggle due to economic uncertainty. On the other hand, if rate cuts fuel risk appetite and encourage investment in equities, the S&P 500 can rise while the dollar weakens. Sectors like technology and industrials tend to benefit most from a weaker USD, while domestically focused companies may be less affected. Overall, while there is often an inverse relationship, factors like inflation, global demand, and Fed guidance influence the strength of the correlation.