as some investors bet inflation will ease fast enough for the Federal Reserve to end its rate hikes earlier than projected. The S&P 500 index is up 6% year-to-date after falling 19.4% in 2022.was one of the worst performing U.S. equity
funds tracked by Morningstar as the Fed's monetary policy tightening weighed on many of the high-growth stocks Wood focuses on. Investors are awaiting the Feb. 1 conclusion of the Fed's monetary policy meeting for clues on whetheris swaying policymakers to a less hawkish view. The central bank is widely expected to increase its key policy rate by another 25 basis points next week. Rates are currently between 4.25% and 4.50%, up from zero a year ago.
"I don't want to call this month a junk rally but it definitely has that aroma," said Brian Jacobsen, Senior Investment Strategist for Multi-Asset Solutions at Allspring Global Investments. "But if the end is near for rate hikes that does tend to be a more bullish environment for lower quality and higher growth names historically."Overall, January's rally has helped ARK Innovation's assets under management grow by approximately $1.