Financial markets are often affected by sentiment conveyed in news headlines. As major news events can drive significant fluctuations in stock prices, understanding these sentiment trends can provide important insights into market movements. This project aims to answer the question whether the sentiments extracted from financial news headlines can predict stock movements.

We use 5 years worth of data extracted from Yahoo Finance and Stock News API, obtain sentiment scores using FinVader, and use Models: Logistic Regression, Gradient Boosted Trees, XGBoost, and LSTM, to predict whether the next day's stock prices would rise or fall. We use a simulated stock portfolio to evaluate the effectiveness of the models.