Key Takeaways
- The US NY Fed GDP Nowcast for Q3 has seen a slight downward revision to 2.02% from its previous estimate of 2.12%, signaling a modest deceleration in economic growth.
- OpenAI has begun the wider rollout of its highly anticipated GPT-5 model, with its Chief Operating Officer expressing a desire for broad user access by the end of the week, including a free tier.
- European stock markets displayed a mixed performance, with Britain's FTSE 100 down 0.1%, Germany's DAX flat, while France's CAC 40 rose 0.5% and Spain's IBEX gained 1%.
Economic Outlook: US GDP Nowcast Softens
The latest data from the US New York Fed indicates a minor dip in the third-quarter economic growth projection. The GDP Nowcast for Q3 now stands at 2.02%, a slight decrease from the prior estimate of 2.12%. This "nowcast" provides a real-time estimate of Gross Domestic Product growth, reflecting the most current economic data releases. The revision suggests a marginally softer economic expansion than previously anticipated.
AI Frontier: OpenAI's GPT-5 Begins Wider Rollout
In a significant development for the artificial intelligence sector, OpenAI has commenced the rollout of its next-generation language model, GPT-5. The company's Chief Operating Officer has expressed optimism for widespread user access by the end of the week. GPT-5 is being made available to free, Plus, and Pro tier users of ChatGPT, with Enterprise and Education users slated to receive access next week.
The new model is touted as a "major upgrade," offering enhanced capabilities in areas such as coding, reasoning, and a significantly lower "hallucination" rate compared to its predecessors. This wider availability of GPT-5 is expected to further democratize advanced AI functionalities, potentially impacting various industries from software development to content creation.
European Markets See Mixed Fortunes
European equity markets presented a varied picture as trading concluded. Britain's FTSE 100 experienced a slight decline, closing down 0.1%. Meanwhile, Germany's DAX remained largely unchanged, ending the day flat. This indicates a cautious sentiment among investors in these major European economies.
In contrast, France's CAC 40 posted a gain of 0.5%, and Spain's IBEX led the positive movements, climbing 1%. The divergence in performance across the continent's leading indices reflects differing regional economic drivers and investor reactions to recent news.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.