CNBC’s Jim Cramer attributed the stock market decline on Monday to news from the chief of the US Treasury.
On Sunday, secretary Janet Yellen told Bloomberg News that raise the interest rate would be positive for the country if the Biden government’s grand spending plans help set off some inflation in an expanding economy.
“The prospect of higher interest rates has scared the market,” said Cramer.Bad money“In response to the mixed meeting on Wall Street.
The Dow Jones industry average slipped 126 points, or 0.36%, to close at 34,630.24. The S&P 500 finished 0.08% lower at 4,226.52. The Nasdaq composite, however, was a winner, improving 0.49% to 13,881.72.
Yellen, a former chairman of the Federal Reserve, said Bloomberg President Joe Biden’s $ 4 trillion bailout could run to $ 400 billion a year, but argued that any surge in consumer prices would subside over the next year.
“It made salespeople [do] what is widely known as “hit bids,” “Cramer said, referring to when traders are willing to sell a stock below a buyer’s bid price.
That helped lower the steelmaker’s stock Nucor, one of the top S&P 500 winners this year. Nucor stock rebounded from its lows and closed at $ 107.37.
“Sellers overwhelmed buyers, beating all bids” to an intraday low of $ 105.51, down from $ 110 last week, Cramer said.
“I think it’s a fabulous buying opportunity. Nucor has had several years of doing well when the [business] Cycle gets going, “he said.” But the stock closed more than 1%, which put me in an opposition camp. “