Market sentiment is a key driver of financial markets, influencing asset prices and investment decisions. Traders and investors monitor sentiment through indicators like the VIX, put-call ratios, and social media trends. Bullish sentiment can fuel rallies, while bearish sentiment may trigger sell-offs. Economic data, geopolitical events, and corporate earnings reports shape sentiment daily. A shift in sentiment can create opportunities or risks, making it crucial for market participants to stay informed. Sentiment analysis, using AI and big data, helps gauge investor emotions and predict trends. Staying ahead of sentiment shifts allows for better decision-making in volatile markets.
