The Clap
Following a smaller-than-expected inflation increase, the ARK Innovation ETF (ARKK) saw large gains at the conclusion of last week’s session.
The Deets
Many of the ETF’s biggest holdings saw their stock surge, having been pushed down all year by the Fed’s increased efforts to curb inflation.
Among the biggest gainers from the fund’s holdings were Zoom, Roku, Shopify, and Tesla.
So What
The fund’s recovery portrays how quickly growth stocks can recover losses if inflation continues to slow down.
Now What
The increase will act as a silver lining to the ARKK ETF, which has dropped more than 60% since the beginning of the year.
Background
Cathie Wood had previously expressed her concern that the aggressive interest rate hikes could drive the economy toward deflation and a recession.
