The Role of COVID-19 News in Shaping Stock Market Sentiment: Insights from News Events and Social Media

EasyChair Preprint 14877

Abstract

The COVID-19 pandemic has had an unprecedented impact on global stock markets, with market volatility driven by the constant stream of news events and social media discussions. This study investigates the role of COVID-19-related news and social media sentiment in shaping stock market behavior, using a combination of sentiment analysis and case studies of key pandemic events. By analyzing data from major news outlets and social media platforms such as Twitter and Reddit, we examine how different phases of the pandemic—from initial outbreaks to vaccine announcements and the emergence of variants—affected investor sentiment and market trends. Our findings reveal that news events often triggered immediate, sharp market movements, while social media sentiment provided early signals of longer-term trends. We also highlight the differential impact on various sectors, with healthcare and technology responding distinctively compared to travel and hospitality. This study underscores the growing importance of real-time sentiment analysis for investors and policymakers in managing financial uncertainty during crises.

Keyphrases: COVID-19, Market Behavior, news events, social media sentiment, stock market

@booklet{EasyChair:14877,
  author    = {Docas Akinyele and Godwin Olaoye and David Ray},
  title     = {The Role of COVID-19 News in Shaping Stock Market Sentiment: Insights from News Events and Social Media},
  howpublished = {EasyChair Preprint 14877},
  year      = {EasyChair, 2024}}