ARKK’s rebound was mainly driven by several heavily held stocks. Among them, Zoom, the top stock, rose 29% during this period, Roku, the third largest stock, rose 11%, Block, the fourth largest stock, rose 17%, and Coinbase, the eighth largest stock, rose by 11%. up 24%.

"Wooden Sister" Cathie Wood has recently staged a sharp rebound, bringing some signs of optimism to the US stock market that has been sluggish this year.

Since hitting bottom on May 11, ARK Invest's main fund ARK Innovation ETF (ARKK) has rebounded 17%, exceeding the S&P 500 index html's 24.4% increase in the same period.

ARKK This rebound was mainly driven by several heavily held stocks. Among them, Zoom, the top stock, rose 29% during this period, Roku, the third largest stock, rose 11%, Block, the fourth largest stock, rose 17%, and Coinbase, the eighth largest stock, rose by 29%. up 24%.

And "Sister Mu's" "favorite" Tesla performed poorly during this period. Due to high valuation and Musk's acquisition of Twitter transaction, Tesla fell 4.1% during the same period.

media analysis pointed out that the rebound momentum of some stocks held by ARKK may come from short covering . Data from S3 Partners shows that short sellers have been covering positions in Zoom in recent weeks, and short positions in other major stocks such as Tesla and Block have also increased recently.

Since the beginning of this year, as inflation has soared and the Federal Reserve aggressively raised interest rates , US stocks have fallen sharply, and technology stocks that "Sister Wood" has always been optimistic about have borne the brunt. Even though has rebounded rapidly recently, ARKK has still retraced as much as 56% this year.

Whether the current rebound can be sustained remains a question.

For one thing, even after the sharp decline, valuations for ARKK holdings remain high. Take Tesla as an example. After a sharp correction this year, its price-to-earnings ratio is still as high as 56.2 times, lower than the 120 times at the end of last year, but much higher than the S&P 500 index's price-to-earnings ratio of 17.7 times.

In addition, some companies in which ARKK holds shares are not even sustainably profitable, and their valuations are based on expectations of strong growth. This makes them particularly vulnerable to higher borrowing costs.

On the other hand, the Fed’s pace of raising interest rates has not stopped yet. The recent rebound of the ARKK fund coincides with a fall in U.S. bond yields, with the benchmark 10-year U.S. bond yield closing at 2.955% last Friday, down from a high of 3.124% on May 6.

The current market expectation is that the Federal Reserve will continue to raise interest rates by 50 basis points at its policy meetings in June and July, which will put downward pressure on U.S. stocks, especially technology stocks.

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