Rising yields have started to hit equity markets. Last Tuesday, the S&P 500 fell almost 2 per cent before closing higher following a late surge, but there was no turnaround on Thursday, when the tech-heavy Nasdaq suffered its biggest one-day selloff since October.

The S&P 500 has been within 5 per cent of its all-time high for almost four months, notes Ritholtz Wealth Management's Michael Batnick, with investors buying every minor dip over that period.

Will that continue? As long as yields go up for the right reason, equities will ultimately benefit and dips should be bought into, says Barclays, “but regime shift brings volatility and a new leadership, which most investors are not positioned for”.