The Impact of News and Social Media on the Stock Market

In the information age, the impact of news media and social media on the stock market is becoming increasingly significant. This paper analyzes the influence of news and social media on the stock market from the perspectives of the information transmission chain, emotional differences, sentiment analysis techniques, and AI applications. Through a review of the literature, it is proved that the inventors behavior will be influenced by their emotions, which will be easily affected by the information they receive from the news and social media. It is found that by utilizing AI models and sentiment analysis techniques, emotions can be transformed into quantifiable data, which can be applied to more accurate stock price prediction systems, resulting in more precise stock price and trend forecasts. However, there are still many issues, such as information overload and overreaction to information, which can influence inventors behavior and cause redundancy in the accuracy of predictions. It is suggested that future research can focus on mitigating these factors and improving prediction accuracy.