The post Grok 3 shares the probability of a 2025 stock market crash appeared on BitcoinEthereumNews.com.

Although the stock market remains in a bullish trend despite short-term losses, concerns persist about the possibility of a crash in the coming months. Indices such as the S&P 500 recently hit a new all-time high as some analysts anticipate continued growth, have highlighted the market’s strength.  However, relative to historical valuations, the current S&P 500 levels are seen as alarmingly high. Specifically, the stock market has recently hit the highest overvalued spot in history, which has often preceded a downturn.  Additionally, on February 21, the market experienced its worst trading day of 2025, wiping out almost $1 trillion in value. Given these factors, the pressing question remains: Is the stock market on the verge of a major correction? Grok projects recession probability  To this end, Finbold turned to xAI’s most advanced artificial intelligence (AI) tool, Grok 3, for insights into the probability of a 2025 stock market crash. First, the AI model outlined key factors that could lead to a downturn or sustained market stability. Grok acknowledged that the U.S. economy remains resilient, with low unemployment and strong consumer spending providing a solid foundation for continued growth. At the same time, the AI platform noted that inflation, though still above the Federal Reserve’s target, is projected to stabilize around 2.4%, a significant improvement from the soaring prices of recent years. Despite these strengths, Grok 3 identified several risks that could spell trouble for the stock market. For instance, stubbornly high inflation could deter the Federal Reserve from cutting interest rates as aggressively as investors hope. Notably, expectations suggest that the Federal Reserve might implement two quarter-point rate cuts in 2025, which may not be sufficient to ease financial conditions. Additionally, Grok noted that the stock market has been riding high, and a mean-reversion drop of 20% is plausible even…

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Filed under: News - @ February 25, 2025 4:18 pm