Skip to content
Review Open access

Machine Learning for Stock Market Prediction: A Review of Sentiment, Technical, Macroeconomic, and Fundamental Factors

Jul 2026 · Applied and Computational Engineering · Vol 239, pp. 98-103 · 0 citations

TL;DR

A clear transition from single-factor prediction models to multi-factor prediction systems is revealed and a comprehensive understanding of current developments in stock prediction is provided and potential directions for further research are highlighted.

Abstract

Predicting the stock market has become an important research topic in recent years, because accurate result can support investment decision and reduce financial risks.Traditional statistical models are hard to analyze in the nonlinear market, leading researchers to develop machine learning models. This paper reviews recent studies about stock prediction based on machine-learning methods from four perspectives: traditional machine learning models, sentiment analysis, technical indicators, macroeconomic and fundamental factors. The reviewed literature shows that machine learning methods can have better result than traditional models in handling complex financial data. Furthermore, sentiment information, technical indicators, and macroeconomic or fundamental factors can significantly improve prediction performance. However, each approach has limitations. The review finds that using multiple factors may relate to accurate predictions. Therefore, combining different factors through hybrid models is considered the most effective strategy. Finally, this review reveals a clear transition from single-factor prediction models to multi-factor prediction systems and provides a comprehensive understanding of current developments in stock prediction and highlights potential directions for further research.

Read PDF

Similar papers

Review Open access Jul 2026

Artificial Intelligence for Financial Time-Series Forecasting: A Systematic Review of Stock Market Prediction Models

The findings indicate that Long Short-Term Memory is the most widely adopted Deep Learning model, XGBoost and Random Forest are the dominant Machine Learning algorithms, while Hybrid models consistently achieve the highest prediction accuracy and lower forecasting errors.

Sunil Molke, A. Vaidya, G. P. Dhok · 0 citations
Conference Open access Jul 2026

A Review of Stock Forecasting Methods Based on Improved LSTM Series Models

This paper systematically reviews the research process for stock prediction based on improved LSTMs, elaborates on the different improved LSTMs and their drawbacks, and summarizes the principles, advantages, and disadvantages of the four models: PCA-LSTM, CNN-LSTM-Attention, BERT-Bi-LSTM, and Event LSTM-Attention.

Mengqi Li · 0 citations
Conference Open access Jul 2026

Applications of Machine Learning in Finance: A Review of Futures Prediction, Asset Pricing, and Risk Management

The findings indicate that machine learning effectively compensates for the defects of traditional methods, yet faces common challenges including weak model interpretability, high dependence on high-quality data, and low cross-market adaptability.

Ming-Xuan Shuai · 0 citations
Open access 2023

Predictive Modeling for Stock Market Volatility

Results indicate that AI-driven predictive models outperform traditional statistical approaches in stock market volatility forecasting, providing a reliable foundation for data-driven investment strategies and next-generation intelligent financial analytics systems.

Seshagiri N, Mahabala H. N. · 0 citations

We use cookies to run the site and, with your consent, for analytics and to show ads. See our Cookie Policy.