Wall Street was supposed to drop on Tuesday, However, the stock market has seen a great trajectory.
The usual suspects — tons of negative analyst notes, surging bond yields, mixed earnings, light housing data, and higher commodity prices — all line up against the market on Tuesday. Not to mention the statements made by St. Louis Fed President James Bullard the day before that a Raising the interest rate by 75 basis points It may be possible at the next policy meeting to speed up the central bank’s fight against inflation.
“If all the usual suspects had excuses, what could explain today’s unexpected rush,” CNBC’s Jim Kramer said on Tuesday.mad money“I think we tend to underestimate our advantages,” he added.
Cramer listed three main reasons for what he called the “strange action” in the market.
- The market was oversold, making it difficult for stocks to fall.
- Cramer recalled 1994 when the Federal Reserve doubled interest rates and stocks were still rising. And if history is any indication, Pollard’s bad words may not be so bad in the end, he said.
- Another reason for the market’s resilience on Tuesday, according to Kramer, is that the US is in a better position than other countries, citing the reopening of the US economy and reliable energy sources.
While inflation is a problem, Kramer got an answer for that, too.
“We get higher prices for steaks, corn chips are more expensive and a bigger petrol bill, but we also have much higher wages to beat the pain,” he said.
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