Cathie Wood: The market often underestimates the impact of technological innovation in reshaping the macroeconomy, and inflation may unexpectedly decline.

BlockBeats News, May 9th, “Wood Sister” Cathie Wood shared market insights, pointing out that a key signal at present is: despite a significant rise in oil prices over the past three months, the yield curve remains flattening. This is contrary to the traditional economic cycle pattern where “energy shocks being monetized by the Federal Reserve” lead to a steepening of the curve, because the Fed has not monetized this energy shock. The bond market may be pricing in the powerful disinflationary effects brought by AI in advance.

Cathie Wood stated that the cost of training AI models has dropped significantly, with inference costs decreasing even faster, and productivity growth accelerating beneath official data, keeping unit labor costs low. Although mainstream market narratives focus on tariffs, deficits, and structural high inflation, innovation-driven disinflation forces are accumulating. It is predicted that inflation may unexpectedly decline over the next 6-9 months, which will have a profound positive impact on interest rates and long-duration equity assets, and it also reminds the market that the speed and scale of technological innovation reshaping the macro environment are often underestimated.