Cathie Wood and her Ark Investment Management firm appeared unfazed on Friday, pushing more than $9 million into Dow stock Amazon.com even as the stock market slashed lower due to China's retaliation to President Donald Trump's global tariffs strategy.
Wood and Ark Invest purchased 54,120 shares of Amazon stock on Friday for an estimated $9.25 million, according to the company's daily trade disclosure. Dow stock Amazon ended Friday's stock market down 4.15% to 171. As stocks broadly swooned on Friday, Wood also scooped up cryptocurrency play Coinbase. Wood purchased 83,157 shares of COIN for, based on the closing price, around $13.35 million. Coinbase retreated 6% to 160.55 on Friday.
The Amazon stock buys were made through Wood's ARK Innovation ETF, ARK Autonomous Tech, ARK Next Generation Internet and ARK Fintech Innovation ETF.
Other than Amazon and Coinbase, the only other purchases Wood made on Friday were Crispr Therapeutics and Beam Therapeutics. Ark Invest sold Roblox, MercadoLibre, UiPath and Repare Therapeutics.
Dow Jones Futures Tumble, But Off Lows As Trump Tariff Bear Market Continues
Amazon stock advanced around 2.7% while Coinbase stock fell 1.2% during Monday's stock market action.
Shares of ARK Innovation ETF sold off 13.9% last week. ARK Genomics ETF dropped 11.8%.
"We are in the eye of the storm but, if President Trump cares about his legacy — which we know he does — or the midterm election campaign season — which will start this fall — then the last leg of this rolling recession is giving him and the Fed more degrees of freedom to pivot," Wood on Friday posted to X.
"Innovation gains traction during tough times. When consumers and businesses are afraid — which they are now — they are willing to change the way they do things," Wood added, hinting this could be a boost for artificial intelligence and automation.
Stock Market Drops Monday
Trump tariffs triggered a global sell off that continued through Monday. In the U.S., least week was the worst week for the major indexes since the March 2020 Covid crash. The Nasdaq and Russell 2000 tumbled into bear market territory, with the Dow Jones and S&P 500 moving that direction. Treasury yields dived with crude oil plunging to the lowest since 2021.
Buckle Up: What Trump Tariffs Mean For The U.S. Economy And Stock Market
The major indexes continued to fall early Monday. However, Dow Jones futures, along with S&P 500 futures and Nasdaq futures, were well off Sunday evening lows.
Trump's 10% baseline tariffs on all trading partners started Saturday, with the much-higher bilateral rates for most partners beginning April 9. The president announced the massive tariff hikes on Wednesday, pushing average U.S. rates to the highest in a century. Those and other Trump tariffs will have a massive impact on the economy and prices, significantly raising the risk of recession or stagflation.
Cathie Wood, ARK Invest Double Down On These 2 Stocks Amid Sell-Off
JPMorgan now expects the U.S. to fall into recession in 2025 due to Trump tariff impacts. Goldman Sachs now sees a 45% chance of a recession, but would expect a recession if most of the April 9 tariffs go into effect.
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