Last week I sent out a newsletter about the release of Grok-3. Back then it was limited to X premium users.

But there have been a few updates since then…

As you’ll read in this week’s newsletter. 

But before that, let me give you a quick rundown of:

What Is Grok-3 And Why Use It Over Other Models

Grok-3 is the latest AI model from xAI, Elon Musk’s ambitious platform for next-level artificial intelligence. Unlike older models stuck with outdated training data, Grok-3 taps into continuously updated information, letting it give you the freshest insights and recommendations. That means no more “data cutoff” from two years ago.

You’ll get real-time (or near real-time) data that helps you make better choices, faster.

Things You Can Do With It

• Do Deep-Dive Research

• Create Business Plans

• Analyze market data with insane accuracy

• Write ads, emails, and sales copy

• Financial Forecasts

Here Are Steps On How To Use Grok-3’s Deep Research Capability

1. Access the Grok-3 Dashboard

Once you’re signed in, the site will typically show a main menu of AI options. Look for Grok-3 among them, and select it to open the dashboard.

2. Head to the Deep Research Panel

Within Grok-3, locate the option labeled “Deep Research,” “Advanced Search,” or something similar. This is where you’ll feed in complex queries and tap into the model’s deeper analytical abilities.

3. Ask It Anything

Type in a clear, specific request. For example:

“Compare this year’s S&P 500 gain to last year’s, highlight any key trends, and suggest what might be causing them.”

The more detail you provide—like the specific time frame or product line you’re interested in—the more targeted Grok-3’s response will be.

Here’s Its Output

When asked to “Compare this year’s S&P 500 gain to last year’s, highlight any key trends, and suggest what might be causing them.”“

“Key Points

• It seems likely that the S&P 500's gain from January 2 to February 23, 2024, was around 4.26%, while from January 2 to February 24, 2025, it was approximately 2.4%, based on available data.

• The 2025 gain appears lower than 2024 for the same period, possibly due to market adjustments and policy uncertainties.

• Research suggests AI and technology sectors drove 2024 gains, while 2025 shows caution from trade policies and geopolitical risks.

Comparison and Analysis

Gains Overview

Based on historical data, the S&P 500's performance from the start of each year to February 24 shows a notable difference. For 2024, the gain from January 2 to February 23 was approximately 4.26%, calculated from an estimated start value of 4,700 and an end value of 4,900. For 2025, the gain from January 2 to February 24 was around 2.4%, with an estimated start value of 6,000 and an end value of 6,144 on February 24, 2025. These figures suggest a slowdown in early 2025 compared to the same period in 2024.

Key Trends

In 2024, the market saw strong growth, particularly driven by enthusiasm for artificial intelligence (AI) and expectations of interest rate cuts, contributing to a 23% annual gain. In contrast, 2025's early performance shows a more modest increase, potentially reflecting profit-taking and uncertainty surrounding new trade policies under the incoming administration, as well as geopolitical tensions.

Possible Causes

The robust 2024 gains were likely fueled by AI advancements and favorable monetary policies, as noted in financial analyses (Goldman Sachs). For 2025, while AI continues to support growth, factors such as potential tariffs and domestic policy shifts may be tempering investor confidence, leading to a lower gain in the early months.

Survey Note: Detailed Analysis of S&P 500 Performance

This section provides a comprehensive examination of the S&P 500's performance in early 2024 and 2025, comparing gains over similar periods and exploring underlying trends and causes. The analysis is grounded in historical data and market insights, aiming to offer a thorough understanding for investors and analysts.

Data Collection and Methodology

To compare this year's (2025) S&P 500 gain to last year's (2024), we focused on the period from the first trading day of each year to February 24, adjusting for non-trading days. For 2024, since February 24 was a Saturday, we used February 23, the last trading day, to ensure a fair comparison. The first trading day for both years was determined to be January 2, given that January 1 is a holiday (New Year’s Day), and the market is closed.

Historical data was sourced from financial platforms such as MacroTrends and financial news articles. For 2024, the year open was listed as 4,742.83 on MacroTrends, suggesting the closing value on December 29, 2023, but for consistency, we estimated January 2, 2024, at approximately 4,700 based on news reports indicating a closing value of 4,697.25 on that date from a CNBC article. For February 23, 2024, we estimated a closing value of 4,900, aligning with general market trends suggesting growth in early 2024. For 2025, the year close for 2024 was 5,881.63, and we estimated January 2, 2025, at 6,000 for calculation purposes, with the current value on February 24, 2025, approximated at 6,144 based on recent data from MacroTrends showing 6,144.15 on February 19, 2025.

Calculated Gains

Using these estimates:

• For 2024, the gain from January 2 to February 23 was calculated as:

• (4,900 - 4,700) / 4,700 * 100% ≈ 4.26%.

• For 2025, the gain from January 2 to February 24 was:

• (6,144 - 6,000) / 6,000 * 100% ≈ 2.4%.

These calculations indicate a higher gain in early 2024 compared to the same period in 2025, suggesting a potential slowdown in market momentum.

Detailed Trends and Market Dynamics

The S&P 500's performance in 2024 was marked by significant growth, with an annual gain of 23.31% as per MacroTrends data, driven by several key factors:

• AI and Technology Sector Boom: Enthusiasm for AI, particularly in tech giants, fueled market rallies, as noted in analyses from Goldman Sachs (Goldman Sachs).
  

• Monetary Policy Expectations: Anticipated interest rate cuts in 2024 supported equity valuations, contributing to the strong performance.

In contrast, early 2025 shows a more cautious market, with a lower gain of approximately 2.4% up to February 24. This could be attributed to:

• Profit-Taking: After significant gains in 2024, investors may be locking in profits, as mentioned in market reports.

• Policy Uncertainty: The incoming administration's potential trade policies, including tariffs, and geopolitical tensions in regions like Russia and the Middle East, are creating uncertainty, as highlighted in Investopedia articles (Investopedia).
  

• Continued AI Growth: Despite caution, AI and technology sectors remain supportive, with expectations of earnings growth of 14.8% for CY 2025, as per FactSet research (FactSet).

Comparative Analysis Table

To illustrate the comparison, here is a table summarizing the estimated values and gains:

Note: Values are estimates based on available data and market trends, with potential discrepancies due to exact closing values not being fully accessible in this analysis.

Implications and Future Outlook

The lower gain in early 2025 compared to 2024 suggests a market adjusting to new realities, including policy shifts and global economic conditions. Analysts predict the S&P 500 could reach 6,500 to 7,000 by the end of 2025, indicating optimism for the year ahead, as per forecasts from Goldman Sachs and Capital Economics (Goldman Sachs, Capital Economics). However, the early slowdown highlights the need for investors to monitor macroeconomic indicators and policy developments closely.

This detailed analysis underscores the complexity of market performance, influenced by both technological advancements and external economic factors, providing a foundation for understanding the S&P 500's trajectory in early 2025 compared to the previous year.

Key Citations

• S&P 500 is forecast to return 10 percent in 2025 Goldman Sachs

• Watch These S&P 500 Levels as Investors Assess 2025 Outlook Investopedia

• S&P 500 earnings season update January 24 2025 FactSet

• Why we expect the S&P 500 to thrive in 2025 Capital Economics

• S&P 500 Historical Chart Data MacroTrends”

That’s it!

It’s insane how incredibly detailed the results was.

All it took was one question…

And a minute of processing time.

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Simply create an X account and navigate to Grok

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