Market Mood Swings: Why Strong Economy Data Sparks Panic in Tech and Crypto

A well-known market analyst recently expressed his irritation about how strong economic news can cause a sudden rush to sell stocks in fast-growing areas like artificial intelligence and cryptocurrency. This expert, famous for his lively TV show, called the reaction a "big freakout" that seems to never stop, affecting major companies like NVIDIA and others in the crypto and quantum computing fields.

Economic Growth and Market Reaction

The frustration came after reports showed the U.S. economy grew by 4.3% in the third quarter, much higher than the expected 3.3%. This strong growth led to a drop in the chances of the Federal Reserve cutting interest rates soon, which put pressure on stocks that are sensitive to interest rates.

Mixed Market Responses

Interestingly, some of these stocks, including those in the popular "Mag 7" group, initially dipped but later recovered to close higher. However, major cryptocurrency companies like Coinbase and MicroStrategy ended the day in the red, largely due to Bitcoin's volatility.

Historical Context

This isn't the first time such a reaction has been seen. Back in August, NVIDIA's shares also dropped in the pre-market session when the second-quarter GDP numbers came in better than expected.

Expert's Perspective

The expert's strong words highlight a common issue in the market: how quick reactions to economic data can lead to unnecessary panic and sell-offs.