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Fortune
Fortune
Nick Lichtenberg

People are getting fake news on their phones and that’s increasing the risk of a market crash

phone (Credit: Matt Cardy—Getty Images)

What do you get when you combine deep uncertainty about the biggest technological bet in a generation, a new crop of inexperienced retail investors whose primary analyst is their social media feed, and algorithms engineered to reward panic and hype in equal measure? It’s not the setup to a joke, but here’s the punch line: a market that can move 6% thanks to a post on X.

The global economy is facing a distinctly modern macroeconomic threat, one born not from failing banks or collapsing supply chains, but from the screens of mobile devices. Financial markets are demonstrating extreme fragility as sensationalized rumors, fictionalized economic scenarios, and viral “doomscrolling” on smartphones drive erratic trading behavior. With retail investors now wielding unprecedented market power, experts warn that panic-induced equity corrections sparked by unverified digital narratives could actively drag down global economic growth.

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