us stocks fell monday with tech shares failing to hold a morning bounce and the dow jones industrial average on track to finish the trading session in a bear market stocks fell sharply last week with the dow down 4 and ending friday at its lowest level since november 2020 the sp 500 fell almost 47 and the nasdaq composite dropped 51 last week stocks were under pressure monday on worries about rising borrowing costs and as a surging dollar continued to pressure risk assets contributing to negative sentiment in financial markets were comments by bank of england gov andrew bailey who said policy makers will not hesitate to change interest rates as necessary to return inflation to the 2 target sustainably in the medium term the benchmark sp 500 was down 23 from its jan 3 record close through last friday dropping 47 last week after the federal reserve stressed it would continue hiking interest rates aggressively to dampen inflation that is near 40year highs in response the dollar index started the week by topping 114 its highest level since 2002 and the 10year treasury yield which began the year around 165 broke through 38 read dont look for a stock market bottom until a soaring dollar cools down heres why the cumulative weight of the evidence favors a more difficult time ahead wrote jason pride chief investment officer of private wealth and michael reynolds vice president of investment strategy at glenmede inflation remains quite high the federal reserve is hiking quickly and about to take rates above neutral recession risks continue to build and current market valuations do not seem to properly reflect the likelihood of a recession they wrote in a note until markets properly reflect these circumstances and risks investors should strongly consider reducing risk in their portfolios by holding less equities relative to their longerterm goalsbased investment plans adding to the general market angst are sharp moves in the currencies and fixed incomes of those countries where concerns about fiscal imprudence are building in asian trading the uk pound hit a low versus the buck of under 104 after investors reacted negatively to last weeks debtfunded taxslashing budget it later recovered but 10year gilt yields surged 45 basis points to 4282 italian 10year government bond yields hit a roughly 10year peak above 45 after a farright coalition won the countrys election seebailey bank of england wont hesitate to change interest rates as necessary to get inflation to 2 however jonathan krinsky chief market technician at btig asked whether the sp 500s retreat toward june lows should attract investors given the acceleration higher in the dollar global yields and the breakdowns across global fx its hard to not have concerns about longerterm implications the good news is that in the nearterm we are much closer to a tradable bottom than we were at 3900 krinsky wrote in a note despite bearish sentiment and positioning much of this year its the transactional indicators that have been lacking for true capitulation several of those are at or near levels that suggest a bounce should be forming soon especially as the seasonals become a tailwind in midoctober krinsky said technical factors may also support stocks for the short term krinsky noted that the 200week average of 3585 may provide a floor investors were set to hear from a number of federal reserve officials on monday susan collins the new president of the boston fed said that while theres a possibility of a significant downturn given the need to slow demand to transition the economy to a more sustainable path there is a chance such a dire outcome can be avoided also see stocks crashing no but heres why this bear market feels so painful  and what you can do about it