Apollo Global Management Inc.'s chief economist Torsten Slok warns that the dollar's recent gains face significant downside risk if the selloff in artificial intelligence stocks intensifies. The correlation between AI-driven equity momentum and currency strength has become a critical channel for dollar appreciation, making the greenback vulnerable to a reversal in technology sentiment.

Slok's analysis highlights how concentrated equity gains in mega-cap technology names have supported capital flows into U.S. assets, underpinning dollar demand. A sustained pullback in these names could trigger portfolio rebalancing away from dollar-denominated assets, particularly if investors reassess the growth premium embedded in AI valuations.

The warning comes as market participants monitor whether recent AI sector volatility represents a healthy correction or the start of a deeper trend reversal. Slok suggests the dollar's resilience depends on continued confidence in the AI investment thesis, creating a feedback loop between equity sentiment and currency markets that could amplify moves in either direction.