IDEAS home Printed from https://ideas.repec.org/a/rom/conase/v6y2024i1p759-771.html
   My bibliography  Save this article

Analysis of Stock Indices during the SVB Bank Run in March 2023 based on Sentiment Analysis

Author

Listed:
  • Andreea-Madalina BOZAGIU

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Zorina ALLIATA

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

This paper examines the Silicon Valley Bank (SVB) bank run event on March 9, 2023, and seeks to contribute to the understanding of market dynamics during this crisis. The bank run was unique and chilling because of two factors: first, the event was amplified by widespread panic on Twitter following a message by Peter Thiel, a renowned technology entrepreneur; and second, the speed of withdrawals was unprecedented because of the power of social media and the technology that allowed quick reactions. In this paper, we start by examining the market volatility and the impact of the SVB crisis on key indices in the United States and Europe. Then, we analyse the Twitter activity and the corresponding sentiment that emerged throughout the event. Our data indicates that Twitter sentiment accurately mirrored the market's fluctuation and volatility. Moreover, employing readily available Large Language Models (LLMs) for sentiment analysis can potentially serve as an early indicator of market shifts and provide a cautionary signal in the event of a similar occurrence in the future.

Suggested Citation

  • Andreea-Madalina BOZAGIU & Zorina ALLIATA, 2024. "Analysis of Stock Indices during the SVB Bank Run in March 2023 based on Sentiment Analysis," PROCEEDINGS OF THE INTERNATIONAL CONFERENCE ON ECONOMICS AND SOCIAL SCIENCES, Bucharest University of Economic Studies, Romania, vol. 6(1), pages 759-771, August.
    • Handle: RePEc:rom:conase:v:6:y:2024:i:1:p:759-771
    as

    Download full text from publisher

    File URL: https://www.icess.ase.ro/analysis-of-stock-indices-during-the-svb-bank-run-in-march-2023-based-on-sentiment-analysis/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bank Run; Stock Indices; GARCH Volatility; Artificial Intelligence; Sentiment Analysis; Social Media Influence.;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:conase:v:6:y:2024:i:1:p:759-771. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zamfir Andreea (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.