But despite the perceived risk in the market, a majority of Wall Street's top strategists think the jitters are only temporary and that stocks will once again eke out gains for the year.
Seventy-three percent of respondents in CNBC's exclusive "Halftime Report Stock Survey" said they believe the S&P will finish the year at least five percent higher than current levels.
As of Thursday's close, the index was trading at 2,662, so a gain of five percent would put it at 2,795 by year-end. This does, however, fall below the index's all-time closing high -- 2,872.87 -- hit on January 26 before investors turned skittish on rising yields, higher inflation, the threat of mounting trade wars, and a weak dollar.
Rising rates can be a warning sign for equities, but a majority of Street strategists think the yield on the U.S. 10-year treasury would have to move sharply higher before negatively impacting stocks. Sixty-four percent of respondents believe 3.50% is the key level to watch.
The U.S. 10-year yield has risen forty-two basis points so far this year, closing at 2.83% on Thursday.
While overall sentiment on the street remains bullish, forty-one percent of strategists said they believe equities are overvalued. Thirty-five percent believe they're correctly valued, and twenty-four percent said they're cheap.
Technology is the best-performing S&P sector over the past year, and it is one of only two sectors registering gains so far in 2018. (Consumer Discretionary is also higher for the year.) Despite its outperformance and a sell-off triggered by Facebook's Cambridge Analytica scandal, technology remains a favored sector going forward. Seventy-eight percent of respondents said they still rate the sector "buy." Sixty-two percent like financials, with thirty-six percent also favoring industrials and energy.
Still, half of respondents did say they've become more bearish on tech stocks compared to their view at the beginning of the year. Many investors and strategists alike have pointed to the outsized impact of just five tech stocks on the overall sector. The so-called "FAANG" stocks -- Facebook, Amazon, Apple, Netflix, and Google -- account for a nearly forty percent weighting of the Nasdaq-100.