ARK Innovation Set for First Monthly Gain in 8 Months – Reuters
2022.07.29 23:42
ARK Innovation Set For First Monthly Gain in 8 Months – Reuters
By Sam Boughedda
ARK Innovation (NYSE:ARKK), the fund founded by Cathie Wood, is on track to report its first monthly rise in eight months in July.
The rise is on the back of a slight recovery in stocks after a significant downturn that hit tech stocks this year. The recent rise is due to investors believing the Fed may not be as hawkish as expected.
According to Reuters, ARK Innovation has gained 11.3% in July despite declining Friday. The ARK gain has been boosted by a 27% increase in the top holding Tesla’s (NASDAQ:TSLA) share price during the month.
Wood’s fund saw tremendous gains during the pandemic as stocks such as Teladoc (NYSE:TDOC), Zoom Video Communications (NASDAQ:ZM) Inc, and Tesla soared.
However, Reuters stated ARK is still down 53% in 2022, with the Fed’s aggressive rate hikes weighing on Wood’s preferred companies, many of which are comparatively young or unprofitable.
Earlier today, Tom Lee’s Fundstrat stated they think the current market environment is “turning out to the be an August 1982 moment. when stocks ‘recovered the entire 36 month bear market loss in 4 monthst .. that is why we think S&P 500 could be >4,800 before year-end ..”
