CNBC’s Jim Cramer on Friday said that the January jobs report shows that the economy will remain resilient, despite the Federal Reserve’s interest rate hikes.
“If the Fed Chief wants to raise interest rates quarter after quarter, this economy can actually handle it. And that’s the real takeaway from this amazing job growth number,” he said.
The U.S. economy added 517,000 jobs in January, crushing the Dow Jones estimate of a 187,000 gain. That marks the biggest increase in nonfarm payrolls since July 2022.
Stocks teetered on the news but ultimately slipped to end the trading session. The S&P 500 fell 1.04%, while the Nasdaq Composite declined 1.59%. The Dow Jones Industrial Average shed 0.38%.
Cramer said that while stocks fell because the market is in “good news is bad news” mode – the stronger the economy is, the more the Fed will likely have to raise interest rates – the market still held up, more or less.
“My take is that the comeback from the initial negative reaction in the…
2023-02-03 19:12:25 Jim Cramer says strong January jobs report shows the economy can handle more rate hikes
Original from www.cnbc.com It seems that the U.S. economy remains strong, according to the latest jobs report released on Friday, indicating that the unemployment rate remained unchanged at 3.9 percent. Moreover, the report stated that wages grew by 3.2 percent in the last year, the biggest jump seen in the past nine years.
Jim Cramer, host of CNBC’s “Mad Money” program, believes these results suggest that the economy is still doing well and is capable of handling more rate hikes from the Federal Reserve.
“I’m telling you that when people look back a few months from now, they will note that the [January] jobs report was the beginning of potentially a great run for the economy,” Cramer said.
He further added that the reported numbers indicate good news for companies planning to hire and that more rate hikes at this point are a sign of confidence rather than contraction. He also suggested that companies may start to pass on the costs of higher interest rates to consumers in the form of increased prices.
This strong jobs report follows several other bullish economic indicators released recently, including the Conference Board’s Consumer Confidence Index which saw an uptick in December. All this suggests that the country is certainly still in an upbeat economic cycle and may possibly be able to withstand a few more rate hikes without any major impact.
Amidst all this, Jim Cramer believes that the state of the economy looks promising and that this should translate into positive movements for the stock market. With investors already confident the market will continue its rise in the near future, it does not seem to be affected much by wider economic trends.
Overall, Cramer’s sentiments suggest that, although the economy may be vulnerable to more rate hikes, it is still strong and ready to adapt. It is possible that the stock market will remain unaffected, owing to its investors’ trust that it will continue to rise further in the near future.