Cathie Wood flags market correction risk but rejects AI bubble fears
Cathie Wood, chief executive officer of Ark Investment Management LLC, during the Federal Reserve’s Payments Innovation Conference on Tuesday, October 21, 2025 in Washington, DC, USA.
Aaron Schartz | Bloomberg | Getty Images
ARK Invest CEO Cathie Wood flagged the possibility of a “reality check” on AI valuations on Tuesday as she quelled fears of an AI bubble.
Speaking to CNBC’s Dan Murphy on the sidelines of Saudi Arabia’s Future Investment Initiative (FII) in Riyadh, Wood said there will be “a chill” in the markets as interest rates start to rise.
“We will reach a moment next year where the conversation will shift from low interest rates to rising rates,” the closely watched investor said.
“People think that innovation and interest rates are inversely proportional. That hasn’t been true throughout history,” Wood said.
“I want to disabuse people of that notion. But we still think there will be a reality check.”
His comments come amid concerns that tech valuations will rise as both businesses and investors pour money into the sector.
Global markets rose earlier this week on investors’ hopes that the US and China could soon reach an agreement on trade. US stocks jumped to new records on Monday as Asian markets also saw solid gains.
Investors are closely watching a number of key market catalysts this week, including Big Tech earnings and the Federal Reserve’s interest rate decision. The US central bank is expected to cut interest rates for the second time this year.
This is breaking news. Please refresh for updates.
