Stock salience and the asymmetric market effect of consumer sentiment news Academic Article uri icon

abstract

  • We document asymmetric announcement effects of consumer sentiment news on United States stock and stock futures markets. While a negative market effect occurs upon the release of bad sentiment news, there is no market reaction for the counterpart good news. This supports the “negativity effect” hypothesis. Notably, this effect seems most likely to occur in salient stocks, which is consistent with the availability heuristic.

publication date

  • 2012

has subject area