Authors : Oluwasegun Olakoyenikan

Volume/Issue : Volume 9 - 2024, Issue 9 - September

Google Scholar : https://tinyurl.com/2mxw7txy

Scribd : https://tinyurl.com/mrxsxvkc

DOI : https://doi.org/10.38124/ijisrt/IJISRT24SEP585

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This paper examines the economic consequences of misinformation on stock market volatility during the COVID-19 pandemic, highlighting how false information significantly disrupted financial markets. The analysis explores specific high-profile cases where misinformation about vaccines, lockdowns, and treatments led to increased market volatility, panic selling, and shifts in investor behaviour. The study delves into the effects on major indices such as the S&P 500 and Dow Jones, revealing the substantial financial losses experienced by retail and institutional investors. It also discusses the regulatory and institutional responses from financial authorities and social media platforms, as well as the challenges they face in curbing misinformation’s rapid spread. The paper concludes with recommendations for enhancing market resilience, emphasising the importance of media literacy, robust fact-checking, and proactive regulatory frameworks to mitigate the impact of misinformation in future crises. This study underscores the ongoing need for vigilant market practices and improved information governance to maintain economic stability.

Keywords : COVID-19, Economic Stability; Fact-Checking; Financial Markets; Misinformation; Volatility.

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