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Jim Cramer Explains Stock Rally As Wall Street Bets Democrats Will Take Senate

In Wednesday's stock market breakdown, Jim Cramer and Katherine Ross talk the Georgia runoff results, the NYSE reversal, Apple and more.

It's Wednesday, and we know the outcome from one of the two Georgia Senate races. 

Democrat Raphael Warnock beat Republican Kelly Loeffler, but the race between Republican David Perdue and Democrat Jon Ossoff is too close to call currently. 

These two races are important to determine the control of Congress. If both Democrats win, then the Democrats would take control of Congress with Vice President-elect Kamala Harris having the final vote on Senate tie-breakers. 

This also means that President-elect Joe Biden's promises for more fiscal stimulus, higher taxes, and his energy plans would face less scrutiny than if the GOP is able to maintain its hold on Congress. 

While the Nasdaq initially saw declines on a greater potential of a Democrat-controlled Senate, markets soared into intraday trading with the Dow touching all-time highs while the Nasdaq and the S&P 500 also saw gains. 

Cramer said hopes for more fiscal stimulus outweighed initial Wall Street fears of tax increases and greater regulation if Democrats take Congress, calling the runoff a "non-event" for stocks.  

Outside of the markets, Cramer said he was astounded that Democrats even have a chance in a Georgia Senate election, crediting the tight race to President Trump's efforts to discredit the U.S. election process. 

"We have an incredible moment where you can argue that President Trump is destroying the Republican party," Cramer said. "The longer Trump is in office and keeps tweeting, the worse the Republican party is going to do." 

In the video below, Jim Cramer and Katherine Ross talk about the Georgia runoff results, the NYSE reversal, cannabis, Apple and more. 

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And we have a U-turn to a U-turn (A circle if you will. Or 360 if you're hip.) with the New York Stock Exchange reversing its reversal. OK, OK, let me clarify. The NYSE is moving ahead with its plans to delist three Chinese telecommunications stocks from the exchange. 

So let's recap. 

In a brief statement late Monday, the NYSE had said that "in light of further consultation with relevant regulatory authorities" the three stocks would remain listed despite an Executive Order from President Donald Trump in November that banned investments by U.S. citizens into 35 companies with alleged ties to the Chinese military. 

And then Treasury Secretary Steven Mnuchin made a call to NYSE President Stacey Cunningham, per reports, which sparked the headlines claiming that the NYSE was mulling the second U-turn. 

And on Wednesday, CNBC reported that the NYSE had officially decided to delist the companies, leading to the end of a saga that leaves this reporter--and perhaps investors--more baffled than anything. 

Cramer hypothesized that pressure from the White House may have been the catalyst for the reversal of the decision reversal. "The President is still capable of creating havoc," Cramer said.  

Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.

Daniel Kuhn contributed reporting to this article.