This study continues the existing line of research into the generation of asset price bubbles in experimental markets. It breaks new ground by examining the impact of news that traders receive during the experimental sessions. It examines whether positive news would increase the magnitude of bubble formation in an experimental market. The outcome of the experiment showed that there were significant differences between the mean trading prices resulting from positive and neutral news. In addition, the survey questions noted several differences in responses that hint at the motivations behind the behavior that caused the formation of the bubbles. These findings suggest that traders in experimental markets are more influenced by news than by rational calculations of fundamental value.