Smart Finance: Utilizing AI to Predict Stock Prices from News and Market Data

Abstract

This study contributes to Stock Price Prediction by examining how market sentiment and news impact stock movements. We’ve developed a new model that integrates market data and sentiment analysis of news to predict these movements accurately. Our model is crucial for investors and companies aiming to safeguard their interests. We meticulously clean and prepare data, engineer features, and employ various training methods to optimize model performance. Through rigorous testing, we achieve impressive accuracy, predicting next-day stock prices with about 77% accuracy. While our model extends predictions up to 10 days, accuracy slightly decreases over longer periods. Notably, our approach combines market data and news sentiment analysis, enhancing prediction precision. This research isn’t just theoretical; it’s a practical tool for decision-makers in finance. Our model represents a significant advancement in accuracy, offering valuable insights for strategic stock investments.