Long-term rates are still relatively low, but investors are alarmed by how rapidly bond yields have climbed. The 10-year yield began the year around 0.9%. And some experts are forecasting that they could soon head as high as 2%.

"Runaway inflation worries have been a stumbling block for stocks as of late. Because of this, there could be more market weakness ahead as investors grapple with the short- and long-term effects of stimulus," said Lindsey Bell, chief investment strategist for Ally Invest, in a report Monday.

Still, at least one "stay at home" couch potato stock rose sharply on Monday.

And an improving economy should be good news for investors — even if big tech stocks continue to pull back.

Investors may be engaging in what's called sector rotation: flocking to find new market leaders that should benefit from higher inflation and an improving economy, such as banks, consumer companies and energy stocks.

Optimism about Covid-19 vaccines is also giving Wall Street hope that consumers can soon return back to more normal lives and do things like go to movies, take vacations and go shopping more freely again.

Some investors also think that the recent sell-off in big tech may be overdone.

"There is a rotation — but the good tech stocks are still attractive, so that is frustrating," said Randy Warren, CEO of Warren Financial. "Do you really think Apple is no longer a good company? Google, Microsoft and Amazon are still making a ton of money."