Cathie Wood's flagship fund has rebounded 17% as tech and crypto stocks offer investors a flicker of hope

After a bad start to the year, the flagship Ark Innovation exchange-traded fund has staged a fightback recently.

Since falling to a two-year low of $36.63 on May 11, the ARKK is up 17%. The S&P 500 is up 4% while the Nasdaq is up 5.6%.

Despite its moderate resurgence, the ARKK is down 55.4% so far this year and closed at $43.16 on Friday.

Growth and tech stocks have been hurt by the Federal Reserve's plan to raise interest rates, which has slowed their cash flows.

Companies with long-term growth prospects are prioritized by the fund. Its top three holdings, which include electric-vehicle makerTesla, video platform Zoom Video Communications, and streaming hardware maker Roku, are all down in the past year.

Wood hasn't changed her investing strategies over the last month. According to Cathie's Ark, the Ark Invest Exchange Traded Fund has built up a large position in the stock.

Since May 11, Block and Coinbase have increased in value by 26% and 17%, respectively. The day the TerraUSD stablecoin and its sister token luna both collapsed prompted investors to ditch risk assets.

After breaking through the official bear-market marker, stocks rallied as bargain-hunters emerged. The growth category is currently trading at a discount to its fair value.

The slide in bond yields coincides with the rally of the ArKK. The yield on the 10-year Treasury note is 2.955%. Other assets are being looked at as a source of returns.

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