Canada's main stock index was headed toward its worst day in more than three months on COVID-19 lockdown fears until a late partial recovery.

The tech-led selloff in U.S. equities is likely only halfway done, according to the Morgan Stanley strategist whose warning last month about the top-heavy market now appears prescient.

Top picks from Kim Bolton, president and portfolio manager at Black Swan Dexteritas.

It was just 12 trading days ago that the S&P 500 capped an almost uninterrupted 60 per cent rally from its March lows, leaving the benchmark at the most-expensive level since the height of the Internet bubble. Since then, about US$3 trillion of the index’s value has been erased as it tumbles toward a correction.

Shares in Snowflake Inc., which have doubled since their initial public offering last week, are “at risk of a violent sell-off,” according to Summit Insights, which started coverage of the software firm with a sell rating.

In a month during which the red-hot trade in technology stocks has wavered and options activity dominated headlines, traders are facing another potential catalyst for market turmoil on Friday.

The U.S. is emerging as an early favorite in the all-out showdown to rekindle inflation in the world’s major economies.

Top picks from Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners.