Definition of "underreact"

underreact

/ˌʌnd.əɹ.ɹiˈækt/

verb
third-person singular simple present underreacts, present participle underreacting, simple past and past participle underreacted
1. (intransitive) To react inadequately.
  Quotations
  “Investors tend to underreact to positive fundamental change,” said Horacio Valeiras, chief investment officer of Nicholas-Applegate Capital Management.
  2009 October 11, Conrad De Aenlle, “When Emotions Move the Markets”, in New York Times‎