Market Anomaly: Why Good Economic Indicators Push Stock Prices Down

According to conventional economics, a boom should lead to a market rally. However, the current market environment has shifted into a strange situation where such traditional logic does not necessarily apply. According to reports from PANews, President Trump recently strongly pointed out the abnormal market reactions to the Q3 GDP statistics. Despite the official announcement showing a growth rate that significantly exceeded expectations of 2.5%, reaching 4.2%, the market has instead lost its sense of direction and concerns are deepening.

Reasons Why the Stock Market Doesn’t React Despite Strong GDP

In the past, improvements in economic indicators would immediately stimulate investors’ buying appetite. However, nowadays, positive data releases tend to result in the stock prices stagnating or declining. Wall Street traders are more focused on the direction of interest rate policies behind the numbers rather than the figures themselves. Every time strong economic data is announced, there is anxiety that financial authorities might respond by raising interest rates more aggressively due to concerns about rising prices, which suppresses buying orders.

This paradoxical reaction in the market reflects how delicate the balance is between inflation control and economic growth. Market participants are now more concerned with policy risks in the coming months than with short-term profits.

The Dilemma Between Interest Rate Policies and Market Sentiment

President Trump has issued clear criticism of this unhealthy market structure. He argues that strong economic growth itself does not cause inflation; rather, the problem lies in misguided policy decisions. To restore a healthy market environment, the new Federal Reserve leadership should lower interest rates during periods of economic strength and avoid unnecessary tightening.

The ideal market scenario, as envisioned by the President, is a natural mechanism where “it rises when it should rise and falls when it should fall.” In other words, he hopes that, after decades, we can see a natural movement where the market rises with improving economic indicators and declines with worsening ones. Inflation should naturally subside through a process of stabilization, and interest rates should be adjusted as needed, not forcibly suppressed to hinder growth—that is the core of his argument.

Criticism of the Financial Elite

Furthermore, the President issues a stern warning to the current financial policy decision-makers. His statement that “if we leave unchecked the forces trying to destroy the upward trend of the economy, the nation can never become strong” criticizes those who overly control the market under the guise of financial expertise. This reflects opposition to the financial elites, often called “otaku” in Japanese, who are obsessed with specific theories in their fields.

He advocates that market movements should not be constrained by unfounded theories, but rather that flexible policy responses based on market participants’ perceptions and economic realities are necessary. By stating, “Those who oppose me will never become the Chair of the Federal Reserve,” he emphasizes the firmness of this stance.

To resolve the distortions currently present in the market, policy shifts that bridge the gap between economic data and market psychology are essential. Such changes are likely to significantly influence the market environment in 2026.