The US stock market could roar higher if President-elect Joe Biden is able to smooth out the country’s troubled start with the Covid vaccinations, CNBC’s Jim Cramer said Wednesday, just hours before the Democrat is sworn in.
“It’s pure chaos. I predicted it would be pure chaos. I never thought it would be this bad,” Cramer said of the introduction of vaccines to “Squawk Box.” As President Biden says on the first day, “ It’s a new phase. We have plans, soldiers, get ready, “I think this market could explode.”
There is a need for additional incentives to support Americans and businesses affected by the pandemic, Cramer said. However, he argued that the most necessary fuel for the stock market to continue its robust recovery from pandemic-era lows is the timely distribution and delivery of vaccines.
“I think we are all under siege. I think an orderly transfer of power, coupled with a well-defined plan to give us vaccines as they roll out, will allow this market to skyrocket,” the Mad Money host said. “Everything else, I’m not saying it’s irrelevant, but you can’t open this economy until we figure out how to get the Pfizer and Moderna vaccines in our arms.”
Biden has pledged to deliver 100 million doses in its first 100 days. Last week, he outlined his plan to do so, including tapping the National Guard and the Federal Emergency Management Agency to set up large-scale vaccination sites across the country. Biden also plans to accelerate the availability of Covid vaccines at local pharmacies.
Cramer said he believes Biden’s plan for the federal government to play a more active role in vaccine delivery is necessary. Still, Cramer said Biden has set the bar high with his 100-day vaccine promise.
“I think it’s going to be a clock we’ve never seen, one that is believed to have a plan right now. If you set out those expectations, the clock starts at noon,” said Cramer, 65, who has received his first dose of the vaccine.
According to data from the Centers for Disease Control and Prevention, the US has administered 15.7 million doses of vaccine since Tuesday morning. 31.2 million doses have been distributed.