Ark Invest CEO Cathie Wood said on Friday that investor worry about the market makes her more optimistic, not less. She told CNBC that concerns about the AI trade suggest "a more durable bull market," and that she does not think the bull market has been derailed.
U.S. equities sold off sharply on Thursday, reversing an initial rally after the midterm elections. AI-related stocks led the decline, pushing the tech-heavy Nasdaq Composite into correction territory. Tech stocks made a tentative recovery on Friday. The source attributes much of Thursday's sell-off to concerns that a Democrat-led Congress would slow data center construction.
Wood said a "wall of worry" pervades markets. She said investors have long questioned how much firms are spending on AI, how fast they are spending, and how hyperscalers have moved from positive to negative free cash flow.
Wood named rising borrowing costs as a possible "showstopper." Interest rates and bond yields have risen sharply this year, and the source links this to the U.S.-Iran war pushing inflation higher. Wood said the current correction is "partly caused by what's going on in the bond markets."
Wood's flagship Ark Innovation ETF gained more than 35% in 2025, compared with 16.4% for the S&P 500 and 20.5% for the Nasdaq Composite, according to the report. She said she expects the equity rally to continue in 2027.