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 +/- | |
NVIDIA Corp. (NASDAQ:NVDA) | +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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