ARK Innovation ETF (NYSE:ARKK) is nearing 52-week lows again on Thursday, led by sharp declines in the top holdings of Ark's flagship fund.
The ARK Innovation fund is made up of disruptive growth stocks in the technology sector. Shares of several tech companies are trading lower amid overall weakness as traders continue to digest Wednesday's Fed rate hike announcement.
The Federal Reserve raised rates by 50 basis points on Wednesday, its first rate hike of at least half a percentage point in more than 20 years. Stocks surged following the announcement, but have pulled back significantly on Thursday.
An increase in yields has also pressured technology and growth stocks. The 10 Year Treasury yield was hovering around 3.06% at last check. Higher rates lower the present value of future cash flows, which impacts the vlauations of growth names.
Tesla Inc (NASDAQ:TSLA) is the top holding in the ARK Innovation ETF with a 9.45% weighting. The stock was down 8.08% at $875.64 at press time.
See Also: Why Tesla Shares Are Diving
Other top holdings include Roku Inc (NASDAQ:ROKU), Zoom Video Communications Inc (NASDAQ:ZM), Coinbase Global Inc (NASDAQ:COIN) and Block Inc (NYSE:SQ). All of the aforementioned stocks are down more than 8% on Thursday.
Ark Invest founder and CEO Cathie Wood continues to reaffirm her expectations for significant price appreciation in the innovation space over a five-year period.
ARKK 52-Week Range: $45.89 - $132.50
The Ark Innovation ETF was down 9.90% at $47.24 at time of publication.
Photo: courtesy of Tesla.
