The high-yield corporate bond market has gone through "a dramatic earthquake" in the past six weeks because of surging interest rates and that move could impact stocks, Pimco founder and chief investment officer Bill Gross told CNBC on Tuesday.
Gross, whose firm has about $700 billion in assets under management said on "Street Signs" that the fallout could hurt stocks as well.
"We've had a dramatic earthquake of about 8.0 magnitude in the high-yield market in the last six weeks and ultimately equities are going to have to take cognizance of that," said Gross.