What drives US stock markets during the COVID-19 pandemic? A global sensitivity analysis

Ahmed, Walid M.A.

doi:10.1016/j.bir.2022.07.001

Cited by 5 publications

(2 citation statements)

References 183 publications

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“…Chundakkadan and Nedumparambil (2021) discovered that inherent negative sentiment, specifically during the nascent stage of the pandemic, triggered a high quantum of volatility in stock markets across the globe. The findings of Ahmed (2022) lend support to the psychophysical numbing phenomenon in stock markets as markets were found to be highly sensitive to the Twitter-based economic uncertainty index. Dash and Maitra (2022) established that the increased pandemic uncertainty manifested through the google search pattern induced volatility and illiquidity in the market.…”

Section: Impact Of Social Media News and Sentimentsupporting

confidence: 53%

COVID-19 Media Chatter and Macroeconomic Reflectors on Black Swan: A Spanish and Indian Stock Markets Comparison

Ghosh

Alfaro

Gámez

et al. 2023

Risks

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Predictive analytics of financial markets in developed and emerging economies during the COVID-19 regime is undeniably challenging due to unavoidable uncertainty and the profound proliferation of negative news on different platforms. Tracking the media echo is crucial to explaining and anticipating the abrupt fluctuations in financial markets. The present research attempts to propound a robust framework capable of channeling macroeconomic reflectors and essential media chatter-linked variables to draw precise forecasts of future figures for Spanish and Indian stock markets. The predictive structure combines Isometric Mapping (ISOMAP), which is a non-linear feature transformation tool, and Gradient Boosting Regression (GBR), which is an ensemble machine learning technique to perform predictive modelling. The Explainable Artificial Intelligence (XAI) is used to interpret the black-box type predictive model to infer meaningful insights. The overall results duly justify the incorporation of local and global media chatter indices in explaining the dynamics of respective financial markets. The findings imply marginally better predictability of Indian stock markets than their Spanish counterparts. The current work strives to compare and contrast the reaction of developed and developing financial markets during the COVID-19 pandemic, which has been argued to share a close resemblance to the Black Swan event when applying a robust research framework. The insights linked to the dependence of stock markets on macroeconomic indicators can be leveraged for policy formulations for augmenting household finance.

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Section: Impact Of Social Media News and Sentimentsupporting

confidence: 53%

COVID-19 Media Chatter and Macroeconomic Reflectors on Black Swan: A Spanish and Indian Stock Markets Comparison

Ghosh

Alfaro

Gámez

et al. 2023

Risks

View full text Add to dashboard Cite

show abstract

“…While the confirmed cases and deaths of COVID-19 significantly affected the daily stock returns with differences between sectors, the lockdown policies positively impacted the market, also confirmed by (Bouri et al, 2022). Moreover, using an extreme bounds analysis to identify the determinants of US stock price fluctuations during the COVID pandemic Ahmed (2022) founded that the daily confirmed cases and deaths are irrelevant to the stock price formation A study regarding companies' stock market performance during COVID-19, including from the perspective of environmental concerns (Wielechowski and Czech, 2021), found significant differences between sectors; conventional energy and financial sectors suffered in the analyzed period less than the alternative energy sector in terms of average weekly rates of return. Similarly, Kumar and Kumara (2021) concluded that the telecommunications, healthcare, and banking sectors were immune to the COVID-19 pandemic in a study analyzing market capitalization under the impact of the pandemic in India.…”

Section: Literature Reviewmentioning

confidence: 92%

Analyzing the market performance of Romanian firms: do the COVID-19 crisis and classification type matter?

Nuta,

Habib,

Neslihanoglu

et al. 2024

IJOEM

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PurposeStock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.Design/methodology/approachThe data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.FindingsThe study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.Originality/valueThis research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.

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Evolving roles of energy futures markets: A survey

Kim,

Ryu,

Webb

2024

Borsa Istanbul Review

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What drives US stock markets during the COVID-19 pandemic? A global sensitivity analysis

Cited by 5 publications

References 183 publications

COVID-19 Media Chatter and Macroeconomic Reflectors on Black Swan: A Spanish and Indian Stock Markets Comparison

COVID-19 Media Chatter and Macroeconomic Reflectors on Black Swan: A Spanish and Indian Stock Markets Comparison

Analyzing the market performance of Romanian firms: do the COVID-19 crisis and classification type matter?

Evolving roles of energy futures markets: A survey

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