OpenAI just announced the latest iteration of its generative AI model, GPT-4. It is an advanced AI system that can generate up to 25,000 words of text and understand images to express logical ideas about them. It can act as a personal math tutor for students and has internal guardrails to address adversarial usage, unwanted content, and privacy concerns. GPT-4's impact on daily life could be significant, helping people be more productive and improve their quality of life. The goal of OpenAI's partnership with Microsoft is to make this technology useful for everyone, not just early adopters or those close to technology. Its powerful characteristic could be a cause for concern as the technologies do not yet have any regulatory guidelines, and Microsoft could be hit with another antitrust scandal over the technology.


US bank stocks recovered slightly after a sell-off due to Silicon Valley Bank's collapse, followed by bargain hunting and a bullseye CPI number that pushed the S&P 500 1.65% higher. Regulatory investigations are ongoing while Moody's has cut its outlook on the U.S. banking system to negative. However, fears of contagion have eased as regional bank shares have risen.


Gold prices fell after reaching a six-week high as mixed US inflation data created uncertainty over the Federal Reserve's monetary policy. The dollar is still on a path of weakness, and profit taking from a previous rally could be the main driver of gold's pullback.


Oil prices bounced back over 1% on Wednesday, as a stronger OPEC outlook on China's demand helped offset bearish global investor sentiment in the wake of recent US bank failures. Chinese refineries processed 3.3% more crude in the first two months of 2023 compared with the same period a year earlier, driven by fuel export policy and independent refiners processing more in response to improving margins for transportation fuels after Beijing lifted COVID restrictions.


Investors are dialling back on bets on US rate cuts, and fear of a banking crisis is receding, leading to a steadying of the dollar during Asian trading sessions. The European Central Bank is set to meet on Thursday, and the markets expect a 50-basis point hike, which is more hawkish than traders expect from the US Federal Reserve next week, which has an 81.9% probability of a 25-basis point hike.