Jim Cramer explains why the promise of tax cuts could have sent stocks lower on Tuesday

CNBC's Jim Cramer said the Trump-fueled rally has taken a breather as Wall Street weighs what broad tax cuts could mean for the bond market.

"If you believe we're about to get big tax cuts, remember that somebody eventually has to pay for the missing tax receipts — as boring as that is — even if that means the government borrows a lot more money, causing bond yields to spike," he said. Cramer suggested that if Trump's new tax plans are similar to those he implemented in 2016, wealthy people will stand to benefit the most.examined Tuesday's market action, saying the rally fueled by the victory of President-elect Donald Trump took a breather as Wall Street weighs what broad tax cuts could mean for the bond market.

After investors spent days reveling at the thought of how tax cuts could boost earnings, they may now be anticipating how the U.S. will be forced to make up for those lost contributions — usually by selling bonds, Cramer added.

"We can only hope the stock market goes back to ignoring long-term interest rates, or that those rates come back down in response to some benign inflation numbers," Cramer said."Otherwise, you got to expect more days like today."Jim Cramer’s guide to investing: Be tough on your portfolio during a rally

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Jim Cramer's top 10 things to watch in the stock market TuesdayWall Street was looking slightly higher ahead of the open on Election Day.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Jim Cramer's top 10 things to watch in the stock market TuesdayWall Street was taking a breather early Tuesday after the S&P 500 extended its record-breaking post-election rally.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Jim Cramer's top 10 things to watch in the stock market TuesdayWall Street was under pressure Tuesday after a down day to start the week.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Jim Cramer's top 10 things to watch in the stock market TuesdayWall Street was muted Tuesday after more record closes for the S&P 500 and the Dow.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Jim Cramer's top 10 things to watch in the stock market TuesdayStocks were headed for a muted open after a solid session Monday.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Jim Cramer explains how rising bond yields could dampen the market's rallyCNBC's Jim Cramer on Tuesday lamented rising bond yields' affect on the market.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »