Jim Cramer says the Santa Claus rally may have started early this year
CNBC’s Jim CramerIt’s possible that stocks will begin Wednesday, according to the statement. their potential Santa Claus rallyThis year’s Federal Reserve announcement brought us a little ahead of our schedule. closely watched policy decision earlier in the day.
For the Santa Claus rally, technically it is the closing five trading days of the calendar year as well as the two first January. Since late 1928, the S&P 500 has been positive in that stretch 78.5% of the time, according to Bank of America.
“We might be seeing the beginning of The long-awaited Santa Claus rallyCramer stated Wednesday that he was satisfied with the news. He spoke shortly thereafter. all three major U.S. equity indexes finish solidly in the green. They were trading in the red during the earlier session. However, they turned around following the Fed’s decision.
The “It’s impossible to rule out” because there is nothing in the calendar which could cause market disruptions between now and the end. “Mad Money”Host said. The Santa rally is not usually held until the following day, however, historically it has been. It wouldn’t surprise me, though, if it had already begun.
Tapering is a term that describes the speed at which the U.S. central banking reduces monthly asset purchases. In 2022, the Fed forecasts three rate increases. This is because the US economy continues to experience significant inflationary pressures and that the labor market is recovering.
Cramer stated that he believed Fed chief Jerome Powell “threaded” the needle during Wednesday’s press conference. This helped to spark the afternoon stock market rally.
Cramer explained that Powell had indicated that such a thing was on the horizon, and that the stock market had prepared for it. “This is also why the stock markets were able to rebound today because it was clear that Powell is more powerful than his bite.” Cramer added.
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