Technology stocks are having their worst stretch in decades. Upheaval in the currencies market might make the rout even worse.
Large technology companies generate 58% of their revenue outside of the U.S.—the highest share of the S&P 500’s 11 groups, according to FactSet. That makes them particularly vulnerable to fallout from the surging dollar. When the dollar strengthens, sales that companies earn in nondollar currencies are worth less. That in turn can shave millions of dollars off company earnings.
