Cathie Wood: Market Often Underestimates the Power of Technological Innovation to Reshape the Macro Landscape, Inflation Could Surprisingly Taper

BlockBeats News, May 9th, Cathie Wood, also known as "Wood Sister," shared her market views, pointing out that a key signal at the moment is: despite a significant increase in oil prices over the past three months, the yield curve is still flattening. This is contrary to the typical pattern in the traditional economic cycle where an "energy shock is monetized by the Fed," leading to a steepening of the curve, as the Fed has not monetized this energy shock. The bond market may be preemptively pricing in the potent deflationary effect brought about by AI.

Cathie Wood stated that the cost of training AI models has dropped significantly, with the cost of inference decreasing even faster. At the same time, productivity growth is accelerating below official data, and unit labor costs remain low. While the mainstream market narrative focuses on tariffs, deficits, and structural high inflation, the deflationary forces of innovation are gathering strength. Predicting that inflation may unexpectedly decrease in the next 6-9 months, which will have a profound positive impact on interest rates and long-duration equity assets, she warned that the market often underestimates the speed and scale at which technological innovation reshapes the macro environment.