Analysis

Word Frequency vs. Stock Prices

When there is a high peak in inflation occurrences in headline articles, particularly in a reputable financial publication like CNBC, it can indicate heightened concerns about rising prices and their impact on the economy. These concerns can lead to a negative sentiment in the stock market, as investors may worry about the Federal Reserve's response, such as raising interest rates, and the potential impact on corporate earnings. We use SPY (S&P500) as a measure of the general stock market.

Mentions of Tesla worsened the downward trend.

Mentions of Disney caused Disney to invert from an uptrend to a downtrend. This can be credited to the dispute of board members vying for the open seat as new CEO.

Ford is the only instance where headline mentions had a positive impact on the stock.

Top Words