Wall Street saw a breakthrough moment in Thursday’s trading as shares rose after lawmakers in Washington agreed on an infrastructure deal, The Washington City Times’s Jim Cramer said.
“If you want to sum up today’s great action in one word, that word is jailbreak,” Cramer said in “Mad Money.” “I call it a jailbreak because pretty much everyone was released today, rather than the usual win-you-lose pattern that has spoiled so much of the action lately.”
The S&P 500 and Nasdaq Composite posted record highs, while the Dow Jones Industrial Average rose more than 300 points to approach its all-time high.
Cramer struck an optimistic note on the market as it shifted its focus from the Federal Reserve’s predictions about the economy and future rate hikes to a breakthrough in infrastructure negotiations that stalled.
President Joe Biden announced during the session that a “hard infrastructure” agreement had been reached with a bipartisan group of senators to devote significant resources to rebuilding roads and bridges and expanding broadband.
Cramer warned that a rebalancing of the Russell indices on Friday could cause stocks to fall, but he expects it will only fuel bullish momentum.
“Right now I think any drop will be bought because this is a positive, opportunistic moment, folks, and there are many who want to put their money to work,” Cramer said. “Today’s jailbreak shows that the bulls are still in charge.”
Cramer highlighted stocks in a range of sectors he said benefited from the White House news. They include drug maker Eli Lilly, automaker Tesla, heavy equipment company Caterpillar and Darden Restaurants, the parent company of Olive Garden.
Shares of Eli Lilly rose more than 7%. Tesla and Darden were up more than 3% each, while Caterpillar was up 2.6%.