Jim Cramer Says Recession Shows Market Has Gone Too Far, Too Fast
Is the market rally over?
U.S. equity futures took a turn for the red on Tuesday as investors looked to book profits from an extraordinary rally for global stocks that continues to defy underlying conditions in major economies around the world.
The Business Cycle Dating Committee of the National Bureau of Economic Research, the group which offers the final word on the official status of the U.S. economy, confirmed last night that it entered recession in February, thanks in part to the "unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy."
The designation ends the longest expansion on record for the U.S. economy.
"In deciding whether to identify a recession, the committee weighs the depth of the contraction, its duration, and whether economic activity declined broadly across the economy," the NEBR said in a statement. "The committee recognizes that the pandemic and the public health response have resulted in a downturn with different characteristics and dynamics than prior recessions."
Jim Cramer weighs in on the NEBR's recession declaration and what it show's about the market's rally following Friday's jobs data.
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