1. AI speeds investor reactions to Fed speeches. S&P 500 impact remains uncertain. 2. Rapid reactions disrupt traditional policy transmission. S&P 500 volatility may increase.
Investor reactions driven by AI introduce uncertainty. Historical market responses to Fed communications have often been volatile without clear directional bias.
The article highlights AI's influence on market reaction speed to central bank messages, crucial for S&P 500 sentiment, yet remains ambiguous in its implications.
The accelerated market reactions are immediate and likely affect short-term volatility around policy announcements.