Jim Cramer Links Market Rally to Trump's Election and Pro-Business Stance
On Wednesday, CNBC's Jim Cramer discussed the day's market performance, noting that traders felt a sense of relief that the election had concluded. They were now gearing up for President-elect Donald Trump's administration.
Cramer mentioned, "It's important to recognize that many were worried about a contested election, which could have led to significant uncertainty. The clear outcome is a big positive for the stock market, drawing in new investments. The election, with its intense atmosphere of fear and conflict, is finally behind us."
During the session, all major indexes reached new heights, with the Dow Jones Industrial Average increasing by 3.57%, the S&P 500 rising by 2.53%, and the Nasdaq Composite advancing by 2.95%. Cramer pointed out that sectors likely to benefit from reduced regulations, especially in Big Tech, experienced substantial gains.
A notable surge was seen in Tesla, whose stock surged by 14.75%. CEO Elon Musk, a prominent supporter of Trump among billionaires, was highlighted by Cramer, who commented on the tendency of Trump to reward his supporters. Musk received a shout-out from Trump during his victory speech early Wednesday morning. Other tech giants burdened by antitrust concerns, like Alphabet and Amazon, also saw their shares climb. Additionally, cybersecurity stocks gained traction, as many on Wall Street anticipate increased cybersecurity threats during a Trump presidency.
However, Cramer acknowledged that the market had also hit record highs under President Biden. He expressed curiosity about the potential market directions with Trump, who historically has shown strong interest in Wall Street.
"The ironic takeaway is that surpassing the market achievements of the Biden administration may be challenging. Although Biden wasn't particularly favored by the stock market, the market still thrived during his term," Cramer remarked. "It's unclear how high the market can rise with a president-elect who views the Dow Jones Industrial Average as his version of TV ratings."
Investment Insights from Jim Cramer
Join the CNBC Investing Club to stay updated on Jim Cramer's market decisions.
For questions about Cramer’s insights, you can reach out by calling 1-800-743-CNBC.
To dive deeper into Cramer's work, you can connect with him on Twitter, Facebook, and Instagram.
Cramer, Market, Trump