We examined the most popular search terms in the FactSet Document Search application, which enables users to carry out AI-powered searches across a wide range of news sources and financial documents. Searches focus both on suggested/related terms and provide the most relevant results for the topic in focus. Here are the top terms of Q2 2023.
Artificial Intelligence
Significant advancements in artificial intelligence and related technologies has resulted in searches for AI, generative AI, Large Language Models, Machine Learning, Natural Language Processing, and ChatGPT. Tech giants such as Microsoft, Google, Meta, and NVIDIA have intensified their AI activities. AI technologies as a whole offer businesses the potential to significantly enhance how they operate. Investors are also seeking to capitalize on the AI boom such as with data-driven methods to identify companies involved in AI.
Inflation
Inflation remains in the spotlight as the Federal Reserve has raised interest rates (i.e., the federal funds rate) 11 times since March 17, 2022, to help stem inflation. As of July 2023, the consumer price index rose 3.2% over the previous 12 months (4.7% less food and energy)—still above the 2% target rate. As of August 16, the FactSet workstation displays the implied outcomes are that the Federal Funds rate will remain flat until the May 2024 FOMC meeting, at which time the first rate cut is anticipated.
China
The second largest economy in the world was a key topic of interest as all eyes were on China’s economic growth—including policies to revive its real estate market. An impressive Q1 2023 growth rate was followed by a sharp slowdown in Q2, indicating a need to implement new stimulus measures. The geopolitical tension of US-China balloon diplomacy also appeared in our searched terms.
Earnings and Guidance
With volatility and recession concerns along with a common search when companies report earnings, guidance was a top search result. As FactSet Vice President and Senior Earnings Analyst John Butters noted in his August 4, 2023, Earnings Insight for companies in the S&P 500: “At this late stage of the Q2 earnings season for the S&P 500, both the number of companies reporting positive earnings surprises and the magnitude of these earnings surprises are above their 10-year averages. As a result, the index is reporting higher earnings for the second quarter today relative to the end of last week and relative to the end of the quarter. However, the index is also reporting its largest year-over-year decline in earnings since Q3 2020.”
Environmental, Social, and Governance
ESG continues to be a highly searched term in Document Search. Popular topics include companies’ sustainability efforts, the U.S Inflation Reduction Act, and net-zero emissions. There has been a growing interest in search terms related to carbon capture and storage. This is mostly due to strengthening government policies and incentives globally, growing focus on net-zero targets, and implementation of carbon capture and storage technologies among major firms in the Energy, Industrials, and Materials sectors.
This blog post is for informational purposes only. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
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