Cathy Wood’s ARK Innovation ETF, tech stocks fall after August inflation

Cathy Wood’s ARK Innovation ETF was falling early Tuesday as tech stocks tumbled on worries that higher-than-expected inflation could lead to a sharp interest rate hike by the Federal Reserve. ARK Creative ARKK Shares,
-6.63%
Technology Select Sector SPDR Fund XLK, down 6.3% on Tuesday morning;
-4.06%
It was down 3.8%, FactSet data show, at last check. The U.S. stock market was largely sold off after the U.S. Bureau of Labor Statistics reported on Tuesday that the U.S. consumer price index rose 0.1 percent to 8.3 percent in August from an annualized rate of 0.1 percent. This was better than expected, as the core CPI reading, which excludes gas and energy prices, was stronger than expected. The Fed is trying to tame high inflation with rate hikes as investors brace for another big hike at its policy meeting later this month. Technology and other growth stock prices are particularly vulnerable to rising prices. Invesco QQQ Trust QQQ,
-4.30%,
The index, which tracks the Nasdaq-100 index, was sinking around 4.2% on Tuesday morning, with losses greater than the 3% drop for the SPDR S&P 500 ETF Trust SPY.
-3.18%,
According to FactSet data, last check.