Cathie Wood addressed recent market volatility during an interview with CNBC, attributing the sharp sell-off in U.S. equities, particularly in AI-related stocks, to fears surrounding a Democrat-led Congress potentially slowing data center construction. Despite this, she expressed confidence in the resilience of the current bull market, citing her experience during past market bubbles.
Wood noted that the current 'wall of worry' among investors is a sign of a more durable market, as concerns about capital expenditure and cash flow in AI development have created volatility.
She highlighted that her flagship Ark Innovation ETF significantly outperformed the S&P 500 and Nasdaq Composite in 2025, and she believes the technology sector is in the midst of a revolution with innovations like robotaxis and AI agents. However, she acknowledged that rising interest rates and bond yields could pose challenges, particularly for companies with high fixed costs in AI.
Wood advised investors to concentrate on their high-conviction stocks and take profits during rallies, suggesting that the market will continue to evolve positively in the coming years