As the stock market lingered in turmoil for the third day, OpenAI’s artificial intelligence (AI) tool ChatGPT has identified two equities likely to drive a potential recovery.
During the last session, the market endured a rollercoaster ride as tariff concerns sparked sharp losses before a rebound trimmed the damage.
The Dow Jones Industrial Average sank 349 points, or 0.91%, to close at 37,965.60 after plunging more than 1,700 points at its session low. The S&P 500 fell 0.23% to 5,062.25. It briefly entered bear market territory during the session.
Meanwhile, the Nasdaq Composite managed a 0.10% gain to finish at 15,603.26, helped by mega-cap technology stocks.
Amid the current swings, ChatGPT believes the following two stocks have a chance of helping the market make a full turnaround.
Apple (NASDAQ: AAPL)
According to the AI model, Apple (NASDAQ: AAPL) stands a strong chance of further gains based on its resilience and growth potential. ChatGPT highlighted the technology giant’s status as a cash-rich, globally diversified company with loyal customers and a massive ecosystem.
Even during economic slowdowns, Apple’s ability to maintain stability makes it a standout. When markets turn upward, ChatGPT predicted, Apple will likely lead the way.
Notably, the company’s vast cash reserves provide a buffer against uncertainty, while its ecosystem, spanning iPhones, Macs, and services, positions it as a reliable performer in tough and thriving times.
ChatGPT also addressed potential headwinds from tariffs, noting Apple’s exposure to China, a key manufacturing hub. However, the AI pointed out that Apple has been diversifying its supply chain, reducing reliance on any region and making it less vulnerable to trade-related pressures.
At press time, AAPL stock was valued at $181.46, plunging 3.6% at the close of the last session. Over the past week, Apple has dropped 17.5%.
JPMorgan (NYSE: JPM)
ChatGPT selected banking giant JPMorgan (NYSE: JPM) from the financial sector, calling it “the biggest and arguably the best-run U.S. bank.” The AI sees banks as natural beneficiaries of a market recovery, well-positioned to capitalize on improving conditions.
Interestingly, JPM is among the select few stocks that witnessed price gains at the close of April 7, rising almost 2% to $214.44. However, it has plunged more than 10% over the last week.
Banks’ profit margins tend to expand as interest rates rise, or even stabilize after a period of volatility. Moreover, the AI model noted that a rebounding economy typically spurs increased loan activity, further boosting financial institutions like JPMorgan.
Additionally, ChatGPT emphasized that financial stocks often ride the wave when investor confidence returns.
Unlike Apple, JPMorgan isn’t directly involved in tariff disputes. However, the AI noted that a broader sense of optimism around global trade could lift investor sentiment, indirectly benefiting financials.
Featured image via Shutterstock
