This paper investigates the predictability of stock market movements using text data extracted from the social media platform, Twitter. We analyse text data to determine the sentiment and the emotion embedded in the Tweets and use them as explanatory variables to predict stock market movements....

We know that when collective emotions are prolonged, it leads not only to action (which could be negative) but also to the formation of identity, culture, or an emotional climate. Therefore, policymakers must understand how collective emotions react to macro-level shocks to mitigate potentially...