By David Randall

NEW YORK, (Reuters) – Cathie Wood, a star stock picker, saw his ARK Innovation ETF fall more than 7% on Friday. Investors were forced to sell high-growth and high-value stocks that rose during the initial stages of the pandemic.

The declines in ARK’s portfolio were extensive. Nine of the 10 most important holdings fell as a result of a decrease in technology stocks. Its largest holding, Tesla Inc (NASDAQ:) Inc dropped nearly 4% and Teladoc Health Inc, which is its second-largest, declined 5.2%.

ARK’s large holding of “stay at home” stocks enabled it to outperform other U.S. equity funds in the past year. However, it is now down 25% for the month. Investors are increasingly anticipating that the Federal Reserve will raise interest rates next year, which could weigh on growth stocks and discount their future cash flows.

Friday’s declines may have been bolstered by a U.S. employment report showing that the U.S. economy added 210,000 jobs last month, pushing the unemployment rate to a 21-month low of 4.2%.

Jim Paulsen (chief investment strategist, Leuthold Group) stated that “Ultimately, the lower unemployment rate may help to build confidence that we will see economic growth regardless of whatever happens with Omicron.”

Jerome Powell, Chairman of Federal Reserve said Tuesday that Powell was open to speeding up its tapering process. This would allow the bank to remove its economic support faster than originally expected.

Friday’s declines pushed the ARK Innovation fund down 24.5% for the year to date, well behind the roughly 20% gain in the benchmark S&P 500 over the same time.

Roku (NASDAQ.) Inc fell 4.1% on Friday. That’s nearly 40% less than the previous year. Spotify Technology SA (NYSE: ) declined 1.4% and is now down 28.3% year-to-date.

ARK Invest didn’t respond to a request of comment regarding this story.