The U.S. dollar functions as a global reserve currency, a characteristic that can enhance the United States' attractiveness to foreign investors.
November 19, 2025
high
economic
Reserve currency status supports international transactions and investment denominated in dollars.
The United States' technology and innovation ecosystem is a major attractor of foreign investment because of its concentration of research, startups, and high-growth firms.
November 19, 2025
high
economic
Technology clusters and innovation capacity draw capital seeking growth and intellectual property opportunities.
A market 'correction' is commonly defined as a decline of at least 10% from a stock's previous high.
high
definition
Financial markets terminology used to describe a sizable but not yet bear-market decline in an individual stock or an index.
In market-capitalization-weighted indexes such as the S&P 500, the largest constituent companies can disproportionately influence the index's direction because larger market caps carry greater index weight.
high
market_structure
Explains why very large companies can move broad market indexes more than smaller constituents.
Three broad factors that commonly attract large foreign investment commitments to the United States are (1) defense and military partnerships including arms sales, (2) the strength of the U.S. economy and the reserve-currency status of the U.S. dollar, and (3) the U.S. technology and innovation sector.
high
contextual
General reasons cited for why sovereign or large foreign investors commit capital to the U.S. economy.