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This report comes from today’s CNBC Daily Open, our new international markets newscast. CNBC Daily Open updates investors on everything they need to know, wherever they are. Like what you see? You can subscribe here.
What you need to know today
- Google has announced Bard, an artificial intelligence chatbot technology that it says will directly compete with OpenAI’s ChatGPT. A few minutes later, Microsoft confirmed plans to hold a news event on Tuesday likely related to ChatGPT. Not to be outdone, Baidu announced that it would launch “Ernie bot”, its own AI chatbot, increasing its market share by 13%.
- Binance, the world’s largest cryptocurrency exchange, will suspend US dollar deposits and withdrawals starting February 8, the company announced without explaining why. This decision affects Binance customers outside of the United States, but not in the United States.
- PRO Not everyone is enthusiastic about AI. Fast Money trader Dan Nathan has warned investors against getting carried away with the hype, calling the AI craze “Sillyville”.
The bottom line
US stock markets feel the price of silver more expensive.
January’s US jobs report was so surprisingly positive on all fronts that it raised the prospect of further interest rate hikes later in the year. As a result, yields on US Treasuries rose. The 10-year Treasury yield rose nearly 12 basis points to 3.651%, its highest since Jan. 11. The 2-year Treasury yield was trading at 4.485% after climbing more than 18 basis points.
The rate-sensitive Nasdaq Composite posted the biggest loss of the three major indices, slipping 1%. The S&P 500 edged down 0.61% and the Dow Jones Industrial Average edged down 0.1%. Whether markets will extend their two-day low depends on Federal Reserve Chairman Jerome Powell’s speech in Washington today. If Powell sounds more hawkish than he did at his press conference last week, investors can expect markets to experience a deeper — and possibly prolonged — rout.
Still, tech companies and investors are hopeful that artificial intelligence can revive markets. Google on Monday announced a new artificial intelligence chatbot technology named Bard. It’s the company’s answer to OpenAI’s ChatGPT, the wildly popular AI chatbot that received a multi-billion dollar investment from Microsoft. Chinese company Baidu joined the bandwagon on Tuesday and said its own AI chatbot, named Ernie, would complete internal testing in March. If these chatbots are successful, they could not only bring a huge injection of liquidity to the markets – Baidu shares have soared 18% since the company was announced – but also fundamentally change the way we work.
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