Broad-based global equity indexes depreciated significantly during the first quarter as macro headwinds hurt consumer, business, and investor confidence. Innovation stocks, particularly those not listed on broad-based indexes, were punished disproportionately in response to inves...

Broad-based global equity indexes ended the quarter lower as a shift in investor sentiment created volatility, tempering early optimism about potential tax cuts and deregulation, including more accommodative policies on mergers and acquisitions.

The S&P 500 Index appreciated in the fourth quarter after the US election raised expectations for reduced regulatory and tax burdens. In ARK's view, the most significant near-term government actions—including deregulation, the Department of Government Efficiency’s (D.O.G.E.) efforts to increase government efficiency, a change in the Securities and Exchange Commission’s (SEC) attitude toward digital assets, and the Federal Trade Commission’s (FTC) more open stance to mergers and acquisitions (M&A)—will create profound opportunities for innovation, particularly in autonomous mobility, multiomics, and digital assets.

Broad-based global equity indexes appreciated in the third quarter as markets anticipated and reacted to a shift in the U.S. Federal Reserve’s (Fed) policy, beginning with a 50 basis point cut in September