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The S&P 500 Twitter Sentiment Index launched this week to measure public opinion of companies in the S&P 500 stock market index. Through the Twitter API, S&P analyzes both bearish and bullish tweets in real time to score the level of positive sentiment surrounding each company.
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"Social media is impacting the way information is being conveyed to investors," Peter Roffman, S&P Dow Jones Indices global head of Innovation and Strategy, said in a statement. "Factor-based indices are a popular strategy for passive investors, so we're excited to work with Twitter to bring this unique tilt to the S&P 500."
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