New York (Reuters)-Starstock Picker Cathie Wood’s ARK Innovation ETF fell more than 7% to its lowest level since November 2020 on Friday. It recovered in the early stages of the pandemic.
The decline in ARK’s portfolio was widespread, with selling technology stocks pushing down the benchmark by 1.3%, resulting in a decline in nine of the top ten stocks. The largest holding, Tesla (NASDAQ :) Inc, fell nearly 4%, and the second largest holding, Tesladoc (NYSE :) Health Inc, fell 5.2%.
Last year, Ark surpassed all other US equity funds by holding a large number of so-called stay-at-home orders, down 25% from last month. Investors are increasingly expecting the Federal Reserve to raise interest rates over the next year and squeeze growth stocks by discounting future cash flow, so these declines are seen.
Friday’s decline may have been supported by US employment reports showing that the US economy added 210,000 jobs last month and pushed the unemployment rate to a 21-month low of 4.2%.
“Ultimately, lower unemployment could help build confidence that whatever happens in Omicron, the economic growth we see will continue.” Reuthold Group Chief Investment Strategist. Said Jim Paulsen.
Federal Reserve Chair Jerome Powell said on Tuesday that the central bank was open to accelerating the pace of its tapering program, effectively removing economic support faster than originally expected.
Due to Friday’s decline, the ARK Innovation Fund fell 24.5% year-to-date, well below the approximately 20% rise in the Benchmark S & P 500 over the same period.
Roku (NASDAQ :) For example, Inc fell 4.1% on Friday, down nearly 40% over the past year. Spotify technology SA (NYSE :) has fallen 1.4%, down 28.3% over the past year.
ARK Invest did not respond to requests for comment on this story.
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Cathie Wood’s ARK Innovation Fund hits 13-month lows on technology sale by Reuters
https://www.investing.com/news/stock-market-news/cathie-woods-ark-innovation-fund-hits-13month-low-in-tech-selloff-2699234 Cathie Wood’s ARK Innovation Fund hits 13-month lows on technology sale by Reuters