Business & Investment

Cathie Wood’s ARK Innovation Fund hits 13-month lows on technology sale by Reuters

© Reuters. File Photo: Cathie Wood, Founder and CEO of ARK Investment Management LLC, will speak at the Skybridge Capital SALT New York 2021 Conference in New York City, USA on September 13, 2021. REUTERS / Brendan McDermid

David Randall

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.

Disclaimer: Fusion media We inform you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are provided by the market maker, not the exchange, so prices may not be accurate and may differ from actual market prices. In other words, price is an indicator and is not suitable for trading purposes. Therefore, Fusion Media is not responsible for any transactional losses that may occur as a result of using this data.

Fusion media Alternatively, anyone involved with Fusion Media will not be liable for any loss or damage resulting from reliance on the data, quotes, charts, trading signals and other information contained on this website. Be fully informed about the risks and costs associated with financial market transactions. This is one of the most risky forms of investment possible.

Cathie Wood’s ARK Innovation Fund hits 13-month lows on technology sale by Reuters Cathie Wood’s ARK Innovation Fund hits 13-month lows on technology sale by Reuters

Back to top button