Kathy Wood's ARK Innovations ETF is taking another spurt in a sell-off in US stock markets on Wednesday, hitting the technology sector hard amid concerns that the Federal Reserve is battling rising inflation.
In the last investigation, the ARK Innovation ETF ARKK, an exchange-traded fund managed by Ark Investment Management founder Wood, was down -4.63%, down nearly 5% Wednesday afternoon, according to data from FactSet. The ETF, which seeks to invest in stocks of companies that could benefit from "disruptive innovation," is down nearly 33% so far this year after Tuesday's stock market crash as well.
All three major US stock benchmarks were trading lower Wednesday afternoon, with the tech-laden Nasdaq Composite comp, seeing the biggest losses of -2.22%, as investors worried about the prospect of rising interest rates as the Fed tries to fight higher inflation. had become more aggressive. 40 years. High growth and tech stocks are generally considered particularly vulnerable to rising rates.
The Nasdaq was down about 1.6% on Wednesday afternoon, while the S&P 500 SPX was down 0.7% and the Dow Jones Industrial Average (DJIA) was down 0.2%, according to data from FactSet, last examined. Information Technology XX:SP500EW.45 was one of the worst-performing sectors of the S&P 500, down about 1.8%.
All three benchmarks were lower on Tuesday, with the Nasdaq leading the way, as investors turned Fed Gov. Lyle Brainard, who indicated the Fed may begin aggressively reducing the size of its balance sheet as early as its next meeting in May.
The central bank's monetary tightening will include a reduction in its nearly $9 trillion balance sheet as well as an interest rate hike. In the minutes of the Fed's March meeting released on Wednesday, officials settled on reducing the balance sheet by $95 billion a month after a typically 3-month phase. The minutes also showed that many Fed officials may support raising rates by 50 basis points in upcoming meetings, should inflation remain high or rise.
Treasury yields climbed on Wednesday amid anticipation of the release of the Fed's meeting minutes.
FactSet data shows, the 10-year Treasury note TMUBMUSD10Y, yielding 2.570%, was trading around 2.6% on Wednesday afternoon. The yield on the 10-year Treasury note rose to 2.554% on Tuesday, the highest level since April 23, 2019 at 3 p.m. Eastern Time, according to Dow Jones market data.
Shares of the Goldman Sachs Future Tech Leaders Equity ETF GTEK, also plunging -3.32% on Wednesday afternoon, although according to FactSet data, at the last investigation, the fund's decline of about 3% was less severe than the loss suffered by the ARK Innovation ETF. Was. The ARK Innovation ETF is extending the decline it saw Tuesday, when it fell 5.7%, FactSet data shows.