Artificial intelligence (AI) has transformed everything from customer service to research, so naturally, investors are curious whether AI can crack the code on stock market predictions. With ChatGPT’s vast knowledge base and analytical capabilities, GOBankingRates put it to the test by asking what the stock market might look like 100 days from now.
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The results were both enlightening and sobering, offering a glimpse into both the potential and limitations of AI-powered market forecasting.
When ChatGPT was asked to predict where the stock market would be in roughly 3 1/2 months, the AI chatbot provided a measured response that focused on trends rather than specific price targets. Here’s what it predicted.
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ChatGPT suggested the S&P 500 would likely continue its upward trajectory, potentially gaining 3% to 7% over the next 100 days, assuming no major economic disruptions. The AI cited historical patterns showing when markets tend to perform well.
The chatbot predicted that technology stocks would continue to drive market gains, particularly companies involved in AI, cloud computing and semiconductor manufacturing. It specifically mentioned that AI-related stocks could see continued investor enthusiasm.
ChatGPT anticipated that Federal Reserve policy decisions would remain a key market driver, predicting two or three rate cuts in 2025 for a target rate of 3.5% to 4% by the end of the year.
The AI suggested that any hints of dovish policy could boost growth stocks significantly.
Rather than smooth sailing, ChatGPT warned of potential volatility windows, particularly around earnings seasons and economic data releases. It suggested that while the overall trend might be positive, investors should expect 5% to 10% pullbacks along the way.
ChatGPT broke down its outlook by major sectors as well.
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Technology: The AI expressed optimism about megacap tech stocks, particularly those with strong AI integration. It suggested companies like Microsoft (MSFT), Google (GOOGL) and Nvidia (NVDA) could continue outperforming.
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Healthcare: ChatGPT predicted steady but unspectacular performance for healthcare stocks, with potential upside from biotech companies developing innovative treatments.
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Energy: The chatbot suggested energy stocks might face headwinds due to renewable energy transitions and potential economic slowdowns affecting oil demand.
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Financials: Banking stocks received mixed predictions, with ChatGPT noting that interest rate cuts could hurt net interest margins but might also reduce loan loss provisions.
