London (CNN Business) - Apple (AAPL) shares are down more than 15% from their January high. Amazon's stock is off 11% from a recent peak in early February. And chipmaker Nvidia (NVDA) has seen its shares plunge nearly 19% since the middle of last month.
What's happening: Tech companies are getting hammered by the recent sell-off in markets. Many stocks in the sector have entered a correction, logging declines of at least 10% from their recent peaks.
The tech-heavy Nasdaq Composite may not be far behind. The index finished Friday more than 8% below the record high notched on Feb. 12. Futures point to another rough trading session on Monday.
Breaking it down: Investors have become increasingly worried that the reopening of many big economies later this year will lead to a spike in prices as people rush out to restaurants and book vacations. That could put pressure on central banks like the Federal Reserve to hike interest rates sooner than expected.
Rock-bottom rates have been a boon for fast-growing tech companies. They've helped keep yields on government bonds extremely low, boosting interest in riskier investments like stocks that offer better returns.
But now, bond yields are rising on inflation concerns. That could make assets like US Treasuries start to appear more enticing — triggering outflows from the tech names that have been so popular over the past 11 months.
Jeroen Blokland, a portfolio manager at Robeco, thinks that as estimates for economic growth continue to improve, so-called "value" stocks in sectors like banking — which benefit from a healthy economy — may begin to get a second look.
"If you believe in this whole reopening and estimates of GDP growth ... that means growth is less scarce," he told me. "[Then the] value sector has at least the possibility to play catch up."
See here: The KBW Bank Index, which tracks top US lenders, is up more than 20% this year. The Nasdaq, meanwhile, has almost wiped out all of its 2021 gains.
Many strategists think the declines are healthy, and that share prices of many tech companies shot up too much, too fast.
Continued selling may hinge on what we hear from central bankers in the coming days. The European Central Bank, which meets later this week, has stated clearly that it will take some action if it believes the rapid increase in bond yields will lead to tighter financial conditions. Fed Chair Jerome Powell has been less explicit.
Blokland thinks that if the yield on the 10-year US Treasury note marches significantly higher this week, Powell may have no choice but to strongly assert that the Fed will act as necessary to ensure the economic recovery isn't affected by market turmoil.
"If we have another week like last week, [he has] to do something," Blokland said.