Cathie Wood’s take this round is quite counter to the consensus: while the market is watching the non-farm data and shouting for rate hikes, she sees a productivity-driven deflationary tailwind. The macro impact of AI is indeed often underestimated.

CoinWorld News reports that Cathie Wood, founder of ARK Invest, stated 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, higher than the market expectation of 88k, but productivity growth is close to 3%, with unit labor costs around 0.5%, which does not align with inflationary boom characteristics, but rather resembles healthy growth driven by productivity. She believes that the market may be underestimating the disinflationary impact of technological innovations such as AI. If her research judgment is correct, the next phase could see accelerated growth, declining inflation, falling interest rates, and a strengthening dollar.