Jim Cramer says Yellen’s comments on interest rates “scared the market”
CNBC’s Jim Cramer blamed Monday’s stock market decline on messages from the U.S. Treasury Chief.
Sunday, secretary Janet Yellen told Bloomberg News that increase the interest rate would be positive for the country, if the Biden administration’s big spending plans helped spark some inflation in a growing economy.
“The prospect of higher interest rates scared the market,” Cramer said on “Crazy money“reacting to the mixed session on Wall Street.
the Dow Jones Industrial Average slipped about 126 points, or 0.36%, to close at 34,630.24. the S&P 500 ended down 0.08% to 4,226.52. the Nasdaq Composite, however, was the winner and rose 0.49% to 13,881.72.
Yellen, former chairman of the Federal Reserve, says Bloomberg President Joe Biden’s $ 4 trillion bailout could shrink to $ 400 billion in spending each year, but argued that any rise in consumer prices would subside next year.
“This prompted sellers to [do] what is known as “hit bids” everywhere, ”Cramer said, referring to when traders are willing to sell a stock below a buyer’s bid price.
This helped to lower the steelmaker’s stock Nucor, one of the top S&P 500 winners this year. Nucor shares rebounded from their lows to close at $ 107.37.
“Sellers overwhelmed buyers, reduced all bids” to an intraday low of $ 105.51 from $ 110 last week, Cramer said.
“I think this is a fabulous buying opportunity. Nucor has several years of doing well when the [business] the cycle is starting, “he said.” But the stock closed more than 1% lower, which put me on an opposition camp. “