The dollar index (.DXY) is up nearly 5 percent for the month, and some analysts feel it could not only help equities stabilize but spur a move higher. (USD/)
"With sovereign debt default now a possibility, and some form of dissolution of the euro also possible, the hidden positive may be for the U.S. dollar, and U.S. dollar-denominated assets," said Brad Lipsig, vice president of investments and senior portfolio manager at UBS Financial Services in New York.
"Capital inflows could support U.S. real estate prices, which could help stabilize U.S. banks," he said. "All of this could help support U.S. stock prices during a difficult period for Europe's economy. It's not inconceivable that this dynamic could trigger a rally in the U.S. stock market."