3 things are preventing the market from a sustainable rally


CNBC’s Jim Cramer said Monday’s rally won’t last as none of the headwinds in the economy have died down.

Stocks rebounded on Monday after an ugly month and quarter end on Friday, marking the best day since June for the Dow Jones Industrial Average and the best day for the S&P 500 since July.

investment related news

CNBC Investment Club
Cramer: It’s the Fed versus China and Putin and stocks weigh dangerously in the balance

Cramer pointed out that the market has recently seen sporadic one-day rallies, but they have always been brought down by three things. Wednesday’s rally will likely meet a similar fate, he added.

Here are three things that are preventing the market from having a sustained rally, according to Cramer

  1. Russian invasion of Ukraine continues. Cramer pointed out that the two countries are still at war and that it seems likely that the energy crisis it is fueling could have serious consequences during the winter months.
  2. China is still under Covid lockdown. While tech stocks rallied on Monday, many of them are reliant on China, which is still beholden to Covid lockdowns with no end in sight.
  3. Homework-driven inflation is still on the rise. Wage, food and housing prices are still too high, Cramer said, adding that he didn’t have high expectations for the release of the non-farm labor report on Friday.

He also said the market is still incredibly oversold.

“The most impressive thing about today’s rally is that it happened. My feeling is that today’s rally is due to too much negative sentiment,” he said. .

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.


cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button