As the tech sector faced a sharp selloff on Monday, Cathie Wood's Ark Invest seized the opportunity to buy the dip

Tech Selloff Wipes Out $750 Billion in Market Cap

As the tech sector grapples with a sharp selloff, Cathie Wood's Ark Invest is boldly buying the dip, sticking to its strategy of mopping up during market downturns. The aggressive stock purchases reflect Ark's confidence in high-growth technology firms, even as broader economic concerns weigh on investor sentiment.

Tech Selloff Wipes Out $750 Billion in Market Cap

Monday's market bloodbath saw the Magnificent 7—a group of leading tech stocks—lose over $750 billion in market capitalization. The selloff was triggered by mounting recession fears and concerns over former President Donald Trump's trade policies, which could significantly impact global markets. However, while many investors moved to safer assets, Ark Invest doubled down on its long-term vision of disruptive innovation.

Ark Invest's Bold Moves: Key Stock Purchases

Ark Invest took advantage of the downturn by snapping up shares in some of its favorite innovative companies. Notable acquisitions include:

Cathie Wood Predicts a 'Deflationary Boom' in Late 2025

Despite the market turmoil, Cathie Wood remains bullish on the future, predicting a "deflationary boom" in the second half of 2025. In a post on X (formerly Twitter), she outlined her belief that the U.S. economy is currently undergoing the final phase of a rolling recession, which could provide the next Trump administration and the Powell-led Federal Reserve more flexibility than investors expect.

“In our view, the market today is discounting the last leg of a rolling recession, which will give the Trump Administration and the Powell Fed many more degrees of freedom than investors expect, setting up the U.S. economy for a deflationary boom in the second half of this year,” Wood wrote.

Betting Big on Innovation Amid Market Uncertainty

Ark Invest's recent buying spree signals strong confidence in the resilience of innovative tech stocks. With Tesla, Coinbase, AMD, and Palantir among its top picks, the firm is reinforcing its belief that disruptive technologies will lead the next market cycle. As the market digests recession fears and political uncertainties, Wood's bold moves position Ark Invest as a major player betting on long-term technological transformation.

Stay tuned as the markets react to Ark Invest's strategic positioning and Cathie Wood's high-conviction plays in the evolving economic landscape.