The unraveling yen carry trade was one reason the tech sector saw a sell-off earlier in the week. Questions began to arise around how much of an impact this will have and if things will get better, especially as worries about interest rates continue to linger.

TD Securities' global head of FX and EM strategy, Mark McCormick, joined Catalysts to provide insight into the carry trade and its effect on the tech sector.

McCormick believes the current situation in Japan is "challenging for tech largely because tech is like premised, particularly on easy money and easy monetary conditions and low interest rates." He argues for stocks like Nvidia ( NVDA ) it could be a positive because "the yen [is] basically rallying because there's a repatriation of capital coming home. And that's causing basically a trigger of interest rates to move higher, particularly real rates. That could also be a catalyst to kind of provide the same outcome and sees earnings start to decline as well."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino