Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry

Characterized by high volatility the energy stock market provides ample research potential for stock market prediction using machine learning models. This paper investigates using business news as an indicator of market sentiment in Recurrent Neural Networks. The authors adopt a finance-specific Tra...

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Main Authors: Chi-Yuan Lee, Eva Anderl
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-07-01
Series:Frontiers in Artificial Intelligence
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/frai.2025.1559900/full
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author Chi-Yuan Lee
Eva Anderl
author_facet Chi-Yuan Lee
Eva Anderl
author_sort Chi-Yuan Lee
collection DOAJ
description Characterized by high volatility the energy stock market provides ample research potential for stock market prediction using machine learning models. This paper investigates using business news as an indicator of market sentiment in Recurrent Neural Networks. The authors adopt a finance-specific Transformer-based model, FinBERT, for news sentiment analysis and use a Long Short-Term Memory (LSTM) model for stock prediction. As prior research indicates that sentiment may vary for different news elements, they specifically explore differences between news headlines and content. Results show that (1) transformer-based sentiment analysis of business news can improve stock market prediction in the energy industry and that (2) sentiment of news content is more effective than sentiment of news headlines.
format Article
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institution Kabale University
issn 2624-8212
language English
publishDate 2025-07-01
publisher Frontiers Media S.A.
record_format Article
series Frontiers in Artificial Intelligence
spelling doaj-art-cab7227e2dbb4f328f1a5e6664ad902f2025-08-20T03:51:48ZengFrontiers Media S.A.Frontiers in Artificial Intelligence2624-82122025-07-01810.3389/frai.2025.15599001559900Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industryChi-Yuan LeeEva AnderlCharacterized by high volatility the energy stock market provides ample research potential for stock market prediction using machine learning models. This paper investigates using business news as an indicator of market sentiment in Recurrent Neural Networks. The authors adopt a finance-specific Transformer-based model, FinBERT, for news sentiment analysis and use a Long Short-Term Memory (LSTM) model for stock prediction. As prior research indicates that sentiment may vary for different news elements, they specifically explore differences between news headlines and content. Results show that (1) transformer-based sentiment analysis of business news can improve stock market prediction in the energy industry and that (2) sentiment of news content is more effective than sentiment of news headlines.https://www.frontiersin.org/articles/10.3389/frai.2025.1559900/fullenergy industrystock predictionsentiment analysisnews sentimentLSTMFinBERT
spellingShingle Chi-Yuan Lee
Eva Anderl
Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
Frontiers in Artificial Intelligence
energy industry
stock prediction
sentiment analysis
news sentiment
LSTM
FinBERT
title Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
title_full Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
title_fullStr Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
title_full_unstemmed Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
title_short Does business news sentiment matter in the energy stock market? Adopting sentiment analysis for short-term stock market prediction in the energy industry
title_sort does business news sentiment matter in the energy stock market adopting sentiment analysis for short term stock market prediction in the energy industry
topic energy industry
stock prediction
sentiment analysis
news sentiment
LSTM
FinBERT
url https://www.frontiersin.org/articles/10.3389/frai.2025.1559900/full
work_keys_str_mv AT chiyuanlee doesbusinessnewssentimentmatterintheenergystockmarketadoptingsentimentanalysisforshorttermstockmarketpredictionintheenergyindustry
AT evaanderl doesbusinessnewssentimentmatterintheenergystockmarketadoptingsentimentanalysisforshorttermstockmarketpredictionintheenergyindustry