CNBC’s Jim Cramer on Tuesday gave a six-item checklist for what must happen before he will be ready to declare an end to the market selloff. As the market swings the other way in what Cramer called a “President’s Day sale”, he said that this downturn might not be just a one-day affair.[0] To end the selloff, six things need to happen according to Cramer:
JPMorgan CEO Jamie Dimon also weighed in on the Federal Reserve and the U.S. economy. He noted that “the U.S. economy right now is doing quite well. Consumers have a lot of money. They’re spending it. Jobs are plentiful.”[1] Dimon also said that the Fed may have lost control of inflation due to massive government borrowing and spending, and that it could be a while before the U.S. sees a return to the 2% inflation rate.[2]
On Tuesday, the Dow Jones Industrial Average and the S&P 500 had the worst day since December 15th, with every sector ending in the red, particularly consumer discretionary stocks.[0] Cramer said that this aggressive selling was a result of Wall Street betting too much on the Fed lowering inflation.[3]
“It’s a tall order here. I don’t even know if we can get all six of these,” Cramer said.[0] “Unfortunately, this President’s Day sale doesn’t feel like it’s over. But this checklist will give us a real good feel. Until more of these boxes get checked, respect the sellers. In fact, you might even want to join them.”[3]
Cramer also said that sectors like agriculture, oil and gas have offered bright spots, and pointed to tech firm Nvidia, which saw its stock jump 14% after a positive quarter and a bullish outlook on artificial intelligence.[4] He also noted that Dimon said “we should all get adjusted to” more normalization of interest rates, and that “America’s the most prosperous place on the planet.[5] We’ll be fine.[5]
0. “Jim Cramer says six things must happen before the market selloff can end” msnNOW, 21 Feb. 2023, https://www.msn.com/en-us/money/markets/jim-cramer-says-six-things-must-happen-before-the-market-selloff-can-end/ar-AA17LP4T
1. “Dimon Says the US Economy Is Facing Some ‘Scary Stuff’ Ahead” Bloomberg, 23 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-23/dimon-says-the-us-economy-is-facing-some-scary-stuff-ahead
2. “Jamie Dimon Says Soft Landing Possible for Economy, but Warns of ‘Scary Stuff’” MarketBeat, 24 Feb. 2023, https://www.marketbeat.com/articles/jamie-dimon-says-soft-landing-possible-for-economy-but-warns-of-scary-stuff-2023-02-24/
3. “Jim Cramer says six things must happen before the market sell-off can end” CNBC, 21 Feb. 2023, https://www.cnbc.com/2023/02/21/cramer-says-six-things-must-happen-before-the-market-selloff-can-end.html
4. “Jim Cramer Says Market Volatility Reflects Back-And-Forth Public Sentiment” NBC 5 Dallas-Fort Worth, 23 Feb. 2023, https://www.nbcdfw.com/news/business/money-report/jim-cramer-says-market-volatility-reflects-back-and-forth-public-sentiment/3201387/
5. “Jamie Dimon says a soft landing is possible, but ‘scary stuff’ is ahead” Business Insider Africa, 23 Feb. 2023, https://africa.businessinsider.com/markets/jamie-dimon-says-a-soft-landing-is-possible-but-scary-stuff-is-ahead/remey57