Sell-Off in Cathie Wood's ARK Innovation Fund Reached 48% at Low Point Thursday

The selling this week, which had spurred a 9% drop in the ETF this week, is largely due to a spike in interest rates. Higher rates typically punishes growth pockets of the market that rely on low rates to borrow for investing in innovation. And their future earnings look less attractive when rates are on the rise.

"I still don't believe the Cathie Wood stocks are low enough," said Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, on CNBC's"Halftime Report.""There's going to be continued pressure." Of the 43 holdings in ARK Innovation, 36 are more than 40% off their 52-week highs. Tesla, Roku, Teladoc Health and Zoom Video are some of ARK Innovation's top holdings.

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