ChatGPT Can Decode Fed Statements, Predict Stock Moves From Headlines – Bloomberg

In the second study, Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models, Alejandro Lopez-Lira and Yuehua Tang at the University of Florida prompted ChatGPT to pretend to be a financial expert and interpret corporate news headlines. They used news after late 2021, a period that wasn’t covered in the chatbot’s training data.

The study found that the answers given by ChatGPT showed a statistical link to the stock’s subsequent moves, a sign that the tech was able to correctly parse the implications of the news.

Source: ChatGPT Can Decode Fed Statements, Predict Stock Moves From Headlines – Bloomberg