Market commentator and popular TV personality Jim Cramer vented frustration Tuesday over strong economic data triggering panic in high-growth sectors such as artificial intelligence and cryptocurrency.
Cramer described the reaction as a “big freakout” that “never ends,” affecting stocks such as NVIDIA Corp. (NASDAQ:NVDA) and those related to cryptocurrency, quantum computing, and data centers.
“It is just stupid,” the “Mad Money” host said.
The big freakout–never ends. You get a strong number and Nvidia and crypto and quantum and rockets and data centers go down. It is just STUPID
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The post was made shortly after the data showed the U.S. economy grew 4.3% in the third quarter, well exceeding expectations of 3.3% and recording the fastest rate of expansion since the third quarter of 2023.
Typically, strong economic data reduces expectations for near-term Federal Reserve rate cuts, putting pressure on rate-sensitive assets such as stocks. According to the CME FedWatch tool, the odds of a 25 basis point cut in January fell from 19.9% to 14.4% in 24 hours.
And while some of these stocks, including those from the popular “Mag 7” cohort, dipped pre-market, they recovered in subsequent sessions to close higher.
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That said, leading cryptocurrency names, including Coinbase and Strategy Inc. (NASDAQ:MSTR) closed in the red, but that had more to do with volatility in Bitcoin (CRYPTO: BTC).
|
Stocks |
24-hour Gains +/- |
|
|
+3.01% |
$189.21 |
|
|
Microsoft Corp. (NASDAQ:MSFT) |
+0.40% |
$486.85 |
|
Amazon.com Inc. (NASDAQ:AMZN) |
+1.62% |
$232.14 |
|
Coinbase Global Inc. (NASDAQ:COIN) |
-2.26% |
$242.30 |
|
Rigetti Computing Inc. (NASDAQ:RGTI) |
-6.58% |
$25.11 |
Interestingly, Nvidia shares also dipped in the pre-market session when the second-quarter GDP came in better than expected in August.
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