U.S. Economy Poised For Growth Driven By AI And Emerging Technologies

According to PANews, ARK Invest CEO Cathie Wood has expressed optimism about the U.S. economy, suggesting it is nearing the end of a 'rolling recession' and is set to experience unprecedented productivity growth driven by artificial intelligence (AI) and emerging technologies. Wood forecasts a 7.3% growth rate for the U.S. GDP, anticipating the largest productivity surge in history despite weak short-term economic data. She believes that technologies such as AI, genetic technology, automation, and cryptocurrencies will drive global economic transformation, creating a positive cycle with U.S. President Donald Trump's tax cuts and deregulation policies. Wood also noted a shift in the U.S. government's stance towards the crypto industry following the resignation of SEC Chairman Gary Gensler, indicating a 'digital asset revolution' in Washington. Currently, market funds are concentrated in the 'MAG7'—the seven major tech giants—but Wood predicts a future shift towards broader innovative stocks. She highlighted ChatGPT's dominance but acknowledged Elon Musk's Grok as growing faster, with open-source AI models like DeepSeek, Meta's Llama, and potential future versions of Grok becoming significant trends. Despite Wood's optimism, market reactions have been skeptical, with many investors questioning her investment strategy and viewing her outlook on Trump's economic policies as overly optimistic. Concerns include the potential for increased fiscal deficits due to tariff policies and tax cuts. Additionally, the ARK Innovation ETF has lagged behind the S&P 500 since its significant decline in 2022. Nevertheless, Wood remains confident that the U.S. economy is on the brink of one of its strongest bull markets, asserting that if AI and other new technologies drive deflation, the country will experience unprecedented economic growth.