Market Sentiment

Market sentiment analysis aims to gauge investor optimism or pessimism by analyzing textual data from news, social media, and financial reports. Current research heavily utilizes natural language processing (NLP) techniques, particularly transformer-based models like BERT and its financial variants (FinBERT), along with other deep learning architectures such as LSTMs, to extract sentiment and predict market movements, often integrating this information into quantitative trading strategies. This field is significant because accurately gauging market sentiment can improve the precision of financial forecasting, enhance algorithmic trading strategies, and provide valuable insights into market volatility and price trends.