Question 1

How does the tool know how a stock reacts to news?

Accepted Answer

For each ticker it aggregates a history of past news events tagged by category and the price move that followed over the next 1 and 5 trading days. That builds a reaction profile: average move, how often the stock moved in the expected direction (hit-rate), and the sample size behind it.

Question 2

Is NewsReact financial advice?

Accepted Answer

No. NewsReact is an educational tool for understanding historical patterns. Past reactions do not predict future results, and nothing here is a recommendation to buy or sell any security.

Question 3

Do I need an API key or to pay anything?

Accepted Answer

No. The core — classification, reaction profiles, predicted moves and buy/sell/hold leans — is entirely rules-based and free, running in your browser. An OpenRouter key only unlocks optional AI-written explanations, and OpenRouter offers free models.

Question 4

Where does the data come from?

Accepted Answer

Earnings-reaction statistics (beats and misses) are backtested on real market history — reported earnings dates, EPS surprises, and daily adjusted closes from Yahoo Finance over the last 5 years, with the method and full accuracy table published on the methodology page. Other categories have no free, reliable event history yet, so they use a clearly-labeled simulated dataset. Every number in the app carries a REAL or SIM label, and fresh headlines come live from Yahoo Finance RSS feeds.