Cathie Wood's Ark Invest bought the dip in 27 stocks as the Nasdaq saw its worst day in 2 years

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Marco Bello/Getty; Savanna Durr/Insider

  • Cathie Wood’s Ark Invest snapped up shares of 27 firms in Tuesday’s rout, according to Bloomberg.

  • Wood’s buying spree arrived as the Nasdaq 100 saw its worst day of trading since March 2020.

  • Markets saw a broad sell-off Tuesday following a hotter-than-expected inflation report.

Cathie Wood’s Ark Invest snapped up shares in 27 companies on Tuesday — the same day the tech-heavy Nasdaq posted its worst one-day drop since March 2020.

Stocks crashed Tuesday following the hotter-than-expected inflation report, which showed CPI rose 8.3% year-over-year in August. The new data signals that the Federal Reserve is likely to deliver more outsized rate hikes, and an increasing number of traders began laying bets on a 100 basis point hike at next week’s policy meeting.

Across all the purchases Wood’s eight exchange-traded funds made Tuesday, Roku was the biggest buy, Bloomberg reported. Before this week, Roku was the third-largest holding in Wood’s flagship fund, the $8 billion ARK Innovation ETF.

Shares of Roku are down more than 70% this year.

Wood’s second and third largest purchases on Tuesday were Butterfly Network and Zoom Video Communications, respectively.

On Monday, Wood tweeted out that deflation remains “in the pipeline,” in response to Elon Musk’s tweet: “A major Fed rate hike risks deflation.”

In 2022 so far, Ark Invest has declined more than 55% amid an aggressive Fed, high inflation, and ongoing recession worries.

Read the original article on Business Insider

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