A 2% 10-year yield could knock 20% off tech stocks, Ned Davis Research calculates

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018.
Brendan McDermid | Reuters

Surging bond yields sent technology shares sliding into correction territory at one point, and there could be an even more severe sell-off ahead if rates keep going higher, according to Ned Davis Research.

The 10-year Treasury yield was on the move higher again on Friday, back up to near its high for the year of 1.62% that triggered the correction. The rebound in rates was hitting tech shares once again in early trading Friday.