Cathie Wood Says Strong Jobs Report and AI-Driven Productivity Could Push Inflation Below Zero by Year-End

ARK Invest CEO Cathie Wood said the latest U.S. employment report beat expectations, with nonfarm payrolls rising by 172,000 versus a market forecast of 88,000. According to Odaily, Wood said prior months’ data were revised up by 93,000 and wage growth was about 0.3%. Wood said productivity growth is currently close to 3% and unit labor costs are about 0.5%. She added that the bond market appears to be pricing in deflationary effects from technological innovation, particularly as AI begins to raise productivity across the economy. Wood said that if tensions with Iran ease and oil prices fall, inflation could enter negative territory before the end of the year. She added that the next phase of the current cycle could feature faster economic growth, lower inflation, declining interest rates, and a stronger U.S. dollar.