CNBC’s Jim Cramer reviewed Wednesday’s market action, saying the session was shaped by traders who were relieved that the election was over and were getting ready for President-elect Donald Trump’s administration.
“Let’s understand that many people thought we’d have a contested election, which would cause tremendous uncertainty,” he said. “The fact that we already know the winner is a huge win for the stock market in itself, which makes it a magnet for new money. This election, with its vicious maelstrom of hate and fear, is finally over.”
All three major indexes reached record highs during the session, with the Dow Jones Industrial Average climbing 3.57%, the S&P 500 jumping 2.53% and the Nasdaq Composite popping 2.95%. According to Cramer, sectors that would benefit from looser government regulations on businesses, including Big Tech, soared.
Cramer highlighted the enormous rally in Tesla, with the stock closing up 14.75%. The electric vehicle maker’s CEO Elon Musk has been one the most vocal Trump supporters among his billionaire peers, and Cramer suggested the president-elect is known to reward his allies. Trump even thanked Musk when he addressed supporters and declared victory early Wednesday morning. Tech megacaps who have been weighed down by antitrust lawsuits, such as Alphabet and Amazon, also notched gains. Cramer added that cybersecurity stocks also saw a boost, as there’s a sense on Wall Street that a Trump presidency will bring on more hacks.
But he pointed out that the market reached record highs during the Biden administration. He wondered what kind of action lies ahead with Trump at the helm, a man who’s always had a fervor for Wall Street.
“The ironic bottom line is it’ll be tough to exceed the Biden regime when it comes to the stock market. Biden was no friend to stocks, but the market went up anyway,” Cramer said. “Who knows how high they can go with a president-elect who always told me that the Dow Jones Industrial Average was his version of the Nielsen ratings.”
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