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Monetary Policy Sentiment and Its Influence on Healthcare and Technology Markets: A Transformer Model Approach

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates how the Federal Open Market Committee’s (FOMC) statements impact healthcare spending, mental health trends, and stock performance in healthcare and tech sectors By analyzing FOMC’s sentiment from 2018 to 2024, we found that higher sentiment correlates with increased depressive disorders (2019–2021) and tech stock returns, especially for the “Magnificent Seven” (like Apple and Amazon). Although healthcare stocks showed weaker ties to sentiment, Granger causality tests suggest some influence, hinting at ways to adjust stock strategies based on FOMC trends. These results highlight how central bank communication can shape both mental health dynamics and investment decisions in healthcare and technology.

Original languageEnglish (US)
Article number6
JournalAnalytics
Volume4
Issue number1
DOIs
StatePublished - Mar 2025

Bibliographical note

Publisher Copyright:
© 2025 by the authors.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • Federal Open Market Committee (FOMC)
  • correlation analysis
  • healthcare expenditure
  • mental health
  • monetary policy
  • sentiment analysis
  • sentiment index
  • transformers

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