pressure in the bond market is also exacting a toll on stocks which look likely to go still lower from here according to bank of americas top strategist in normal times investors seek the safe haven of fixed income when stocks are falling that means rising bond prices and a corresponding fall in yields however with central banks rapidly raising rates to control inflation  fear of a recession are rising and making all assets toxic for investors these days treasury yields in the us surged again friday with the 2year note which is most sensitive to federal reserve rate hikes jumping 74 basis points to 42 around noon et inflationratesrecession shocks are not over plus bond crash in recent weeks means highs in credit spreads lows in stocks are not yet in michael hartnett bank of americas chief investment strategist wrote in his weekly note analyzing the flow of money through markets as consumer and producer prices rise and the federal reserve and its global counterparts react the new regime of higher inflation means secular view remains cash commodities volatility to outperform bonds  stocks he added the stock market friday was on its way to another losing week following a midsummer rally the s  p 500 has fallen more than 45 while the nasdaq 100 whose tilt toward tech stocks makes it particularly vulnerable to higher rates also was down more than 4 bank of americas main sentiment indicator is deeply bearish hartnett wrote though that still hasnt translated into a contrarian buying point as a prescription for when investors may find opportunities hartnett offers nibble at 3600 spx bite at 3300 gorge at 3000 that would translate into respective s  p 500 losses from thursdays close of 42 122 and 202 the index already has lost more than 22 this calendar year the cautionary tone comes as other wall street houses also are lowering expectations goldman sachs on thursday cut its s  p 500 target to 3600 and warned that things could get worse if fed rate hikes result in a hard landing for the economy in that case goldman says the index could fall 16 from current levels hartnett indicated that policy uncertainty remains a problem while central banks are tightening fiscal authorities in the us uk and elsewhere are continuing to provide stimulus  offsetting the inflationfighting benefits of higher rates investors want policy coordination  policy credibility and until they get it are likely to press shorts hartnett said