Cathie Wood's interpretation is interesting; the market indeed tends to think of the worst when it comes to data. If the AI deflation narrative comes true, the script will need to be rewritten.

Sources say that ARK Invest founder Cathie Wood posted that the latest U.S. employment report was stronger than expected, but the market is misreading the signals. She pointed out that non-farm employment increased by 172k jobs, higher than the market expectation of 88k, but productivity growth is close to 3%, unit labor costs are about 0.5%, which does not align with inflationary boom characteristics, but rather resembles healthy growth driven by productivity. Cathie Wood believes that the market may be underestimating the disinflationary impact of technological innovations like AI; if her research is correct, the next phase could see accelerated growth, declining inflation, falling interest rates, and a strengthening dollar.