CNBC’s Jim Cramer warned Monday that any market rally will be temporary until the economy cools.
“Right now you can get a bounce. Without some additional data that shows the Fed is actually winning the war on inflation, however, rates will continue to rise unabated and any rally will be…very short-lived” , did he declare.
Stocks fell on Monday ahead of the release of Producer Price Index and Consumer Price Index data later this week, which will shed more light on the state of inflation. The Nasdaq Composite’s losses for the year are more than 32% after Monday’s plunge, while the S&P 500 is down more than 24% so far this year.
Markets have been rocked in 2022 due to soaring inflation, Federal Reserve interest rate hikes, Russia’s invasion of Ukraine and recession fears.
Still, the market still has some way to go before it bottoms out, according to Cramer. He previously said inflation needed to subside in three key areas for the Fed to stop wreaking havoc on the market.
“Until the market is viciously oversold, which we are not, and we get softer data for wages, food and housing, you should treat all of these rallies as fakes,” a- he declared.