Addressing recent U.S. employment figures that have sparked market anxieties, Cathie Wood, founder of Ark Invest, asserted on the 8th that the apparent slowdown in hiring is merely a surface-level trend, masking profound shifts in the economic landscape. She highlighted that transformative technologies like AI are substantially enhancing the productivity of American businesses. According to Wood, the primary risk confronting today’s economy is no longer inflation but rather technology-driven deflation.

Wood underscored that U.S. macroeconomic indicators now exhibit traits reminiscent of the “Reaganomics” era of the 1980s. Notably, corporate pre-tax profits currently represent 13.2% of GDP—a level not seen in decades. This robust profitability, she explained, stems not only from pandemic-era fiscal and monetary support but also from the significant efficiency gains delivered by AI and automation. Looking ahead, Wood anticipates that as productivity continues to surge, the ratio of the U.S. federal deficit to GDP could decline to approximately 5% by year-end.