Inflation is reached its pinnacle, according to CNBC’s Jim Cramer, which is excellent news for equities that have been crushed recently. “The stock market… completely anticipated the peak in. Commodity prices have been falling for a while, but now it’s obvious, so I believe you had to be purposefully dim to miss this, the “Mad Money” presenter remarked.
After the consumer price index indicated that the rate of Inflation rise slowed in July compared to the previous year, stocks surged on Wednesday. The S&P 500 reached its highest level since May, while the Nasdaq Composite closed at its greatest level since April. All the major indices were higher.
Peaking Inflation, however, might support stock prices even amid a downturn in the economy, according to Cramer, even if this does not necessarily indicate that the economy is no longer in danger of going into recession. The oncoming recession will undoubtedly affect some businesses, but others may enjoy a rise in their stock prices as a result of the increased value of their assets in a situation when Inflation may finally be under control.
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