Financial markets can be regarded as a non-equilibrium open system.

Financial markets can be regarded as a non-equilibrium open system. Understanding how they work remains a great challenge to researchers in finance, economics, https://www.forexlive.com/ and statistical physics. Fluctuations in financial market prices are sometimes driven by endogenous forces and sometimes by exogenous forces.

The Fed chief stated that committee members would remain data-dependent, determining moves on a meeting-by-meeting basis. In the following sections, we examine the statistical laws regarding linguistic similarity among news articles, and propose measures for the novelty of a news article and for the topicality of an article. Last week, the national average gas price per gallon rose above $4.50 for the first time, AAA reported, and Chase is predicting it could surpass six dollars a gallon by August.

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The crypto market is battered by massive liquidations from institutional investors and corporates. Meanwhile, Forex news the price of bitcoin, ethereum, BNB, XRP, solana, cardano, luna, dogecoin, and shiba inu bounce back.

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The legislation would extend EV tax credits, which should be good news for Tesla , General Motors , though there are various income and vehicle price limits on the https://www.enjoint.info/forum/member.php?u=35780&tab=visitor_messaging#visitor_messaging credits. However, the main highlight of Wednesday was the Fed’s monetary policy decision, which was to pull its benchmark interest rate to a range of 2.25%-2.50%.

Dow Plunges Nearly 900 Points: Whats Driving The Stock Market Selloff

The starting point for neoclassical financial economists typically is what they refer to as the ‘efficient market hypothesis,’ which implies that stock prices respond at the very moment that news is delivered to market participants. A number Forex news of empirical studies have attempted to identify such an immediate price response to news but have found little evidence supporting the efficient market hypothesis [17–22]. Why is the market reaction to news greater if it is more topical?

Note that given the definition above, the value of cosine similarity ranges between 0 and 1.
The approach we employ is to use cosine similarity between news articles reported at different points in time to construct a novelty measure.
Fed chief Jerome Powell signaled that policymakers are looking toward slowing the pace of tightening down the road, even as the economy remains stressed and inflation focused.
We believe that such news items contain important information from the viewpoint of investors, but they are much shorter than complete news articles.
Second, although ALERT and HEADLINE articles are very short, they contain all relevant information available at the time.

A similar situation arises when a company makes an earnings announcement. In contrast, the news that we focus on in this paper differ from such anticipated events in that the timing and nature of the events is not known to the public in advance. That is, most important business-related news events are not prescheduled, and our methodology to identify novel news can be applied even to those events. https://www.digital-forum.it/showthread.php?208944-Netflix-Febbraio-2021/page3 Second, the topicality measure we introduce is based on the simple idea that a news article that receives more attentions from news agencies and market participants should have a larger impact on stock prices and transaction volumes. While this is probably a widely held presumption among market participants, somewhat surprising no serious academic research has been conducted on this.