Financial encyclopedia

At the end of 2023, the overall economy or international politics in 2023 has undergone drastic changes, which have had an impact on the stock exchange and derivative financial products in the financial market. Let's review the three major events in 2023 together.

Chat GPT detonated the concept of generative AI.

The upsurge of artificial intelligence concept has led technology giants to launch a series of large-scale models one after another.

OpenAI released ChatGPT-4 and GPT-4 Turbo.

Google launched a new generation of large-scale language model PaLM2.

Facebook launched DialoGPT Plus.

Meta introduced a brand-new large-scale language model Llama.

China's mainland technology giants have also triggered a competition called "Thousand Models War".

Alibaba released a thousand questions about Tongyi

Baidu launched ERNIE Bot.

Tencent released a mixed model and so on.

The popularity of ChatGPT-related concept stocks soared.

Us dollar interest rate hike triggers banking crisis.

On March 10th, 2023, Silicon Valley Bank (SIVBQ) suddenly declared bankruptcy, and its share price dropped from US$ 160 to US$ 0.2. The news that it was finally forced to withdraw from the market triggered global concerns about the survival of the banking industry and a crisis of confidence. Two days later, another well-known bank, Signature Bank(SBNY), also declared bankruptcy. Four major financial institutions, including Bank of America, Morgan Stanley, Citigroup and Wells Fargo, suffered losses of $52 million. The banking crisis gradually spread in mid-March. Credit Suisse, a veteran financial giant, was finally acquired by UBS at a price of 50% off and a "cheap price" of $3 billion. Share prices of European banks such as BNP Paribas and Deutsche Bank also fell.

Bankruptcy of banks has caused great losses to the accounts of ordinary people, and these events have also sounded the alarm for financial regulators.

The Palestinian-Israeli conflict is heating up, and the price of gold and oil is rising.

The largest Palestinian-Israeli conflict in the past 20 years, followed by sharp fluctuations in international oil prices, the price of safe-haven assets gold rose, the Middle East stock market once fell across the board, while US military and energy stocks rose sharply. After the Russian-Ukrainian war, this conflict brought new uncertainties to global stability, and market confidence was hit, which led to the rise of risk aversion. In Europe and the United States, where stock markets generally fell, military and energy stocks rose against the market. At the same time, the long-term interest rate of American bonds soared and the price of gold with safe-haven properties began to rise again.