The Dow Jones fell 100 points on Monday as the pound’s decline added to the market’s woes

The Dow Jones Industrial Average fell on Monday as rising interest rates and foreign currency turmoil weighed on the markets.

The Dow was down 76 points, or 0.3%. The S&P 500 rose 0.2% and the Nasdaq Composite advanced 1.1%.

British pound dropped to a record low Monday against the US dollar. Sterling fell at one point by 4% to an all-time low of $1.0382. The Fed’s aggressive hike campaign, along with the UK tax cuts announced last week, have caused the US dollar to rise. The euro has reached its lowest level against the dollar since 2002. An appreciation of the US currency can hurt the profits of US multinationals, as well as wreak havoc in global trade, much of which is handled in dollars.

“This dollar strength has historically led to some kind of financial/economic crisis,” Michael Wilson, chief US equity analyst, wrote in a note. “If ever there was a time to look for something to break, this would be it.”

Traders will closely watch the S&P 500 on Monday for any break below the bear market low. The S&P’s closing low of the year in June was 3666.77. It closed on Friday at 3693.23 after trading briefly below that level. The intraday low for this year is 3636.87. Any trading below these levels can lead to more selling in the market.

On Friday, stocks ended a rough week with the Dow Jones Industrial Average Find a new low during the day this year It closes 486 pips lower. The broad-based S&P 500 index temporarily broke its lowest closing level in June and closed 1.7% lower. The heavy Nasdaq Composite lost 1.8%.

Another massive rate hike by the Federal Reserve last week was the catalyst for the latest bearish move in the markets. The central bank indicated that it may raise interest rates to 4.6% before tapering back. The forecast also shows that the Fed plans to be aggressive this year, raising rates to 4.4% before the end of 2022.

Bond yields rose after the Federal Reserve decided to raise interest rates by 75 basis points. The two-year and 10-year Treasury rates are at levels not seen in over a decade. Friday, Goldman Sachs Lowered its target at the end of the year For the S&P 500 index to 3600 from 4300.

Interest rates rose again on Monday with two-year Treasury notes rising 4.29% at some point in the day.