Author

Xinghang Sun

Date of Award

2022

First Advisor

KellyAnne McGuire

Second Advisor

Xiaoyang Liu

Abstract

This research makes an analysis on how search volume and online social sentiment impact stock markets. The data of the US comes from Google Trend, Github, Kaggle, and Reddit. The data of China comes from Weibo. The result is that positive social sentiment towards a stock predicts the relatively good performance of a particular stock, while negative social sentiment predicts relatively poor stock performance. Higher google search volume of a stock’s name tends to give rise to a price increase of that stock, while such an effect is unclear for the stock indexes, such as Nasdaq and DJIA. There is a regional difference between China and the US. Chinese Weibo sentiment predicts China stock market better because of the larger proportion of Chinese personal investors.

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