Two familiar culprits are behind the stock market’s “insanely emotional” swings, Cramer said Wednesday after the Dow Jones Industrial Average erased its yearly gains, the S&P 500 turned negative and the Nasdaq saw its worst day since 2011.
“The two men with the most influence over the stock market in the world, the president and the Fed chief, are engaged in a totally destructive tug of war where both sides are wrong,” Cramer said. “That’s right, President Trump and Fed Chairman Jerome Powell have staked out opposite sides of the economy and the real loser is you, the investor.”
Cramer couldn’t understate the tension between the central bank and the executive branch, saying he couldn’t recall “a moment more convoluted than this one” when it came to the macroeconomic layout.
One one side sits the Fed, bent on raising interest rates in order to combat inflation before it takes off, and on the other, President Trump, who has said he believes that the “biggest threat” to his presidency is the Fed’s rate hike agenda.
Click here to find out why Cramer thinks this tension is so dangerous for stocks.
Stock market surges after Christmas
Strong holiday sales and oil prices helped boost the stock market following a rout two days earlier.
Stocks roared back on Wednesday, with the Dow surging more than 1,000 points, as […]