chief market analyst Jim Cramer Investors reportedly said on Thursday that it was too early to be bullish on the market, even if lawmakers reach a Consensus on debt ceiling crisis,
“I keep recommending you maintain a high-cash position even if Democrats and Republicans cut a deal, as it was last time it was interactive. s & P Downgrade a few days later which really crushed us,” he said. According In a CNBC report, referring to the sharp decline of the market after the 2011 debt ceiling deal.
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Cramer’s remarks came at a time when Fitch Ratings has retained the United States’ ‘AAA’ long-term foreign-currency issuer default rating at negative on Ratings Watch in view of the ongoing political standoff between President Joe Biden Administration and Republican lawmakers Regarding credit limit.
So far, this year’s debt ceiling debacle is running parallel to 2011, according to market experts, making S&P’s last downgrade particularly prescient. “So, knowing what we know about 2011, it’s too early to call bullish on this market,” Cramer said. “It’s best to keep the cash on the sidelines and wait,” he said.
Although the equity market showed signs of concern earlier this week, NVIDIA Corporation’s NVDA Upbeat forecasts and a sudden interest from investors in AI stocks balanced the sour sentiments. SPDR S&P 500 ETF Trust Spy closed 0.87% higher on Thursday while Invesco QQQ Trust Series 1 QQQ Received 2.43%, According to Benzinga Pro,
debt ceiling: As per the latest developments at the time of writing, Biden and House Speaker Kevin McCarthy are closing in on a deal that would extend the government’s $31.4 trillion debt ceiling for two years limit spending on most itemsReuters reported, citing a US official.
The report said the deal, which has not been finalized, would increase funding for discretionary spending on the military and veterans, while essentially capping non-defense discretionary spending at current year’s levels.
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