CNBC’s Jim Cramer on Friday said that Wall Street’s recent gains could continue next week depending on the Federal Reserve’s actions.
“A decision not to raise rates at all might show too much weakness. A quarter-point with a statement that they’ll remain vigilant will allow the bulls to party on,” he said.
The central bank is set to conclude its first meeting of the year on Wednesday, which Wall Street largely expected to beget a quarter-percentage point interest rate hike.
Cramer said he’ll also have his eye on the January nonfarm payrolls report set to be released Friday. “If wage inflation’s very strong, the quarter-point move will be criticized. If it’s weaker, we’ll be hearing all about that hard landing,” he said.
All estimates for earnings, revenue and economic data are courtesy of FactSet.
Monday: Whirlpool
Q4 2022 earnings release at 4:05 p.m. ET; conference call on Tuesday at 8 a.m. ETProjected EPS: $3.23Projected revenue: $5.08 billion
He predicted that the company will…
2023-01-27 19:24:30 Fed decision on Wednesday could let the bulls ‘party on’
Source from www.cnbc.com On Wednesday, the Federal Reserve (Fed) is expected to make an announcement that could set the stage for a continuation of the bullish market. Many analysts anticipate that the Fed will announce a substantial reduction in its benchmark interest rate and a reduction of quantitative easing, which has the potential to extend the recent highs seen in the market.
As the Fed prepares to make its announcement, investor sentiment has shifted to the upside as expectations of lower rates provide a boost to stocks. This is particularly true for companies that are sensitive to interest rate changes, such as financial, technology and industrial companies. In addition, many believe that the lower rates will be beneficial to consumers, by making it easier for them to obtain loans.
While there is a general consensus that the Fed’s announcement will be beneficial to the market, the ultimate impact is yet to be determined. Some investors remain unconvinced that a reduction in rates and easing of quantitative policies will have an outsized impact on stocks, especially in the long run. Furthermore, there is still uncertainty surrounding the potential impact of the Fed’s decision on the economy and global markets.
No matter what the outcome, Wednesday’s announcement will be an important milestone for the market. If the Fed signals a more dovish prioritization of economic policy, it could fuel a continuation of the recent rally in stocks. Conversely, if the announcement is more hawkish in tone, it could cause a sudden pull back in the stock market. Regardless of the outcome, investors should keep a close eye on the Fed’s decision on Wednesday, as it could serve as a catalyst for the stock market in the days and weeks ahead.