Dow Jones Economic News can serve as a significant forecaster for stock index movements, predicting daily direction with a 74% hit rate.
This white paper explores the ability for economic news to predict future S&P 500 index movements. We analyze the sensitivities from various news subjects, such as inflation, interest rates and more.
By processing the news text through a natural language processing (NLP) algorithm, we are able to read and analyze millions of news articles related to economic subjects to create a robust and significant forecast model.