Integrating Multimodal Deep Learning for Enhanced News Sentiment Analysis and Market Movement Forecasting

Abstract

This paper presents a novel multimodal deep learning framework for analyzing news sentiments and forecasting market movements by leveraging natural language processing, deep learning, and auxiliary data sources. Traditional methods often rely solely on textual news data, limiting their predictive power due to the complexity and ambiguity of language. Our approach incorporates additional modalities such as stock prices, social media sentiment, and economic indicators to capture a more comprehensive view of market dynamics. We employ a hybrid deep learning architecture that combines convolutional neural networks (CNNs) for text feature extraction, long short-term memory (LSTM) networks for capturing sequential dependencies, and attention mechanisms to selectively focus on the most relevant features. To address data scarcity, we introduce advanced data augmentation techniques, generating synthetic news headlines based on historical stock price movements and sentiment patterns. The proposed system is evaluated on a comprehensive dataset spanning multiple years, including news headlines, stock prices, social media data, and economic indicators. Our method achieves an accuracy of 77.51%, significantly outperforming traditional methods and demonstrating improved robustness and predictive power. This study highlights the potential of integrating diverse data sources and sophisticated deep learning techniques to enhance news sentiment analysis and market movement forecasting.