Empirical Research on the Association Between Nasdaq Index Volatility and Depression Indices Across Different Age Groups in the U.S.

Abstract

This study aims to explore the relationship between Nasdaq Index fluctuations and depression indices among different age groups in the United States. By analyzing various indicators of the Nasdaq Index and age-specific depression index data provided by the U.S. Centers for Disease Control and Prevention (CDC) from 2020 to 2024, the study reveals a significant age-heterogeneous association between stock market volatility and the mental health of different age groups. Specifically, the Nasdaq Index is generally negatively correlated with depression indices across all age groups, with the strength of the correlation increasing with age, and the strongest correlation observed in the 50-59 age group. Granger causality tests reveal a unidirectional causal effect of depression indices in the 30-39 age group on the Nasdaq Index, and a unidirectional causal effect of the Nasdaq Index on depression indices in the 70+ age group. LSTM model prediction results show that the model performs best in predicting depression indices for the 70-79 age group, while the explanatory power of the model is significantly reduced for the 80+ age group. The research findings emphasize the differential impact of economic fluctuations on the mental health of various age groups and provide a basis for developing targeted mental health interventions.