RBC’s top US equity strategist lays out 2 reasons why the tech sell-off is only halfway finished – and shares 3 areas where investors can find the best opportunities

• Tech stocks’ status as leaders of the market has come into question recently as interest rates rise.
• The Nasdaq 100 has dropped nearly 7% since it’s February 12 peak.
• In a recent note, RBC Capital Markets said the index could still head into bear market territory.

Tech stocks‘ status as leaders of the market has undergone a reckoning over the last month.

The tech-heavy Nasdaq 100 dropped as much as about 11% from its February 12 peak as investors rotated out of expensive growth stocks and into more cyclical and value plays, and as 10-year Treasury yields jumped above 1.5% on the prospect of a near-term economic recovery.

But as interest rates took a break in recent days, tech stocks found their footing once more.