A weakening US dollar will help power the stock market higher in the 2nd half of the year, Fundstrat says

• A falling US dollar will help power the stock market higher in the second half of the year, according to Fundstrat.
• The US Dollar Index has declined by 13% from its September high and recently broke below a key support level.
• A falling dollar is a tailwind for multinational companies and helps boost their earnings.

One of the big headwinds of 2022 that helped push stock prices lower is turning into a tailwind that should help power the stock market higher in the second half of the year, according to Fundstrat's Tom Lee.

That tailwind is a weakening US dollar, which according to a Monday note from Lee, should help lift profit margins for US multinational companies over the next two to three quarters.