Sentiment Analysis of Bloomberg Markets Wrap Using ChatGPT: Application to the NASDAQ

10 Pages Posted: 15 Apr 2024

See all articles by Baptiste Lefort

Baptiste Lefort

University of Paris-Saclay - CentraleSupélec; AI For Alpha

Eric Benhamou

Université Paris Dauphine; AI For Alpha; EB AI Advisory; Université Paris-Dauphine, PSL Research University

Jean-Jacques Ohana

AI For Alpha

David Saltiel

Université Paris Dauphine; A.I. Square Connect; AI For Alpha

Beatrice Guez

AI For Alpha

Thomas Jacquot

AI For Alpha

Date Written: April 1, 2024

Abstract

In this paper, we use a comprehensive dataset of daily Bloomberg Financial Market Summaries spanning from 2010 to 2023, published by Yahoo Finance, CNews and multiple large financial medias, to determine how global news headlines may affect stock market movements. To make this analysis more effective, we employed ChatGPT. First, from the vast pool of daily financial updates, we identify the top global news headlines that could potentially have a significant influence on stock prices. Second, for each headline, we question ChatGPT to answer whether the news might lead to a rise, fall in stock prices or is indecisive. This two-stage method proves more effective than posing a direct question to the entire text. By gathering ChatGPT’s predictions day by day, we formed an overall market sentiment score. We transform this score into a practical investment strategy in the NASDAQ index, demonstrating the significance of minimizing noise in sentiment scores by initially accumulating and then detrending them. This approach showcases that ChatGPT’s analysis of news headlines can provide valuable insights into future stock market behaviors and be a valuable tool to develop intuitive NLP-driven investment strategies leveraging news predictive power.

Keywords: LLMs, NLP, Sentiment Analysis

JEL Classification: G11, G13

Suggested Citation

Lefort, Baptiste and Benhamou, Eric and Ohana, Jean-Jacques and Saltiel, David and Guez, Beatrice and Jacquot, Thomas, Sentiment Analysis of Bloomberg Markets Wrap Using ChatGPT: Application to the NASDAQ (April 1, 2024). Available at SSRN: https://ssrn.com/abstract=4780150 or http://dx.doi.org/10.2139/ssrn.4780150

Baptiste Lefort

University of Paris-Saclay - CentraleSupélec ( email )

Moulon Plateau 3 Joliot Curie Street
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France

AI For Alpha ( email )

35 boulevard d'Inkermann
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Eric Benhamou (Contact Author)

Université Paris Dauphine ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

AI For Alpha ( email )

35 boulevard d'Inkermann
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EB AI Advisory ( email )

35 Boulevard d'Inkermann
Neuilly sur Seine, 92200
France

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris, 75016
France

Jean-Jacques Ohana

AI For Alpha ( email )

35 boulevard d'Inkermann
Neuilly sur Seine, 92200
France

David Saltiel

Université Paris Dauphine ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

A.I. Square Connect ( email )

35 Boulevard d'Inkermann
Neuilly sur Seine, 92200
France

AI For Alpha ( email )

35 boulevard d'Inkermann
Neuilly sur Seine, 92200
France

Beatrice Guez

AI For Alpha ( email )

35 boulevard d'Inkermann
Neuilly sur Seine, 92200
France

Thomas Jacquot

AI For Alpha ( email )

35 boulevard d'Inkermann
Neuilly sur Seine, 92200
France

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