The US productivity story is quietly reshaping market expectations. Higher productivity growth typically translates into stronger corporate earnings, better inflation dynamics, and more sustainable economic expansion—all positive ingredients for risk assets.

Historically, periods of productivity acceleration have preceded broader bull markets. When businesses produce more output per worker, margins expand, and growth becomes less dependent on aggressive central bank stimulus. This shifts the narrative from "will they keep printing?" to "how strong is earnings growth?"

For investors, this matters because productivity-driven gains tend to be more durable than stimulus-fueled rallies. The supply-side tailwinds reduce inflation pressure, which gives policymakers more room to maintain accommodative conditions without triggering stagflation fears.

Right now, some sectors are already pricing in this productivity upside—tech and AI-related investments are leading. But if the productivity miracle broadens across industries, you could see multiple expansion across a much wider set of assets. That's the real bull case here.

The timing question isn't trivial though. Markets don't move on backward-looking data. They move on forward expectations. So the real catalyst isn't confirming past productivity gains—it's believing they'll accelerate further.