CNBC’s Jim Cramer said Tuesday the market’s snapback surprised many investors and was fueled by the rush to get back into stocks as emerging evidence suggests the Covid-Omicron variant may not be that serious as initially assumed.
“I think this surprised a lot of people because if you rewind the tape to eight sessions, you thought Omicron would expand in much the same way as Delta. Delta has really set our economy back as it was, “with Omicron, Cramer said on” Squawk on the Street “.
Preliminary data on Omicron’s severity are “a bit encouraging,” said White House chief medical advisor Dr. Anthony Fauci, on the Sunday after the first figures were released from South Africa, suggesting it may not be as bad as initially feared.
“Instead, the overreaction in both oil and common stocks is so severe that you have that moment where people realize, ‘Wow, we really got oversold. What money can I get in, “said the host.
The Dow Jones Industrial Average was around 300 points higher shortly after Opening Tuesday and rose from there to 646 points, or nearly 1.9%, one day. As Cramer pointed out, investors have been less concerned about Omicron. Wall Street, which has had a week of losses, has been volatile lately, as reflected in the ups and downs of the Dow since it fell 905 on November 26th.