The Impact of Endogenous Sentiment on US Stock Market Trading Volume

Using the popular music of the day to measure people’s sentiment, this sentiment is endogenous rather than market sentiment. Through the analysis of endogenous sentiment and the trend of the price and trading volume of the Dow Jones Index, this paper finds that there is a correlation between the endogenous sentiment of the U.S. public and the trading volume of the U.S. stock market, and proposes one path of the influence of endogenous sentiment on stock market activity using VAR models, impulse response analysis models and Granger causality test models, etc. These findings support some theories in behavioral finance.