By CNBC Jim Cramer said on Wednesday, maybe the stock will start their potential Santa Claus rally slightly ahead of schedule this year, following the Federal Reserve Policy decisions were closely watched earlier in the day.
The time period for the so-called Santa Claus rally is technically the last five trading days of the calendar year and the first two in January. Since late 1928, the S&P 500 has been positive for a period of 78.5%, according to Bank of America.
“We can consider the first part of The long-awaited Santa Claus rallyCramer said on Wednesday, shortly after all three major US equity indexes end solidly in the green. They traded in the red earlier in the session, but turned around following the Fed’s decision.
“You can’t rule that out because there’s nothing on the calendar that could derail the market between now and the end of the year,” he said. “Mad Money” said the presenter. “Historically, Santa’s rally doesn’t usually come a few days later, but it wouldn’t shock me if it had already begun.”
The US central bank has said it will accelerate the pace of reductions in monthly asset purchases, a process known as tapering. The Fed also forecast three rate hikes in 2022, earlier than previously expected as the labor market continues to recover and the US economy faces significant inflationary pressures.
Cramer said he thinks Fed chief Jerome Powell “threaded the needle” during Wednesday’s news conference and helped spark the afternoon stock rally.
“More importantly, because Powell signaled that something similar was about to happen, the stock market took the damage and applied it to every sector, which is the other thing that allowed us to recover.” back today when it became clear that his bark was more powerful than his bite,” Cramer said.
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https://www.cnbc.com/2021/12/15/jim-cramer-says-the-santa-claus-rally-may-have-started-early-this-year.html Jim Cramer Says Santa Rally Could Have Started Earlier This Year