Emotions, moods and hyperreality: social media and the stock market during the first phase of COVID-19 pandemic

Purpose This paper aims to expand the emerging literature on COVID-19 and financial markets by searching for a relationship between uncertainty of first phase pandemic experienced through social media extreme volatility Italian stock market. Design/methodology/approach The authors analyze market trends during lens theory Baudrillard's simulacra hyperreality theory. conducted data analysis in two phases: emotional Granger correlation using KPI6 software 3,275,588 tweets predominant emotion each day observe its with Findings research results show significant causality relation particular closing price FTSE MIB epidemic. highlight strong real world. study confirms role predicting volatility. Research limitations/implications findings have theoretical practical implications as they reveal relevance our society businesses economies. In an emergency, media, expression users' feelings emotions, can generate state that is correlated reality. Since allows users publish share messages without any filter mediation, generated affected highly subjective elements. Originality/value different from previous ones same topic because unlike studies, under normal or simulated scenarios, this focused unpredictable unforeseen emergency event: pandemic. adopts multidisciplinary approach integrates studies economic effects applying well-known theories new unexplored context. reveals impact global