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High-priced tech stocks sink further into bear territory
6 Mar, 2021 07:00 PM
5 minutes to read
Some of the most popular tech stocks have struggled recently. Photo / Getty Images
Financial Times
By: Michael Mackenzie and Eric Platt Some of the hottest technology stocks and funds of recent months have fallen into bear market territory and investors are betting on more turmoil to come, as rising bond yields undermine the case for holding high-priced shares.
A Friday afternoon stock market rally notably failed to include shares in Tesla and exchange-traded funds run by Cathie Wood, the fund manager who has become one of the electric carmaker s most vocal backers.
Surging Treasury yields are weighing on growth fare, including Tesla and the
ARK Innovation ETF (NYSEArca: ARKK), but this recent run of weakness could give way to opportunity with the electric vehicle maker and the famed exchange traded fund.
“Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (‘Genomic Revolution’), industrial innovation in energy, automation, and manufacturing (‘Industrial Innovation’), the increased use of shared technology, infrastructure and services (‘Next Generation Internet’), and technologies that make financial services more efficient (‘Fintech Innovation’),” according to ARK Invest.