U.S. stocks saw a third day gains on Wednesday, as investors remained hopeful European policymakers would soon find a solution to the region’s sovereign debt crisis. Investors are eagerly waiting for euro zone nations to vote Friday on an agreement designed to tighten fiscal controls for member nations.
The Dow Jones industrial average gained 46.24 points, or 0.38 percent, to 12,196.37 while the Standard & Poor's 500 Index added 2.55 points, or 0.20 percent, to 1,261.02.
“This market's charmed and while you have to be skeptical now that we're seeing bears get converted into bulls at a level that's the highest in months, there's no denying that this market has suddenly become in ‘No Quit’ mode,” Cramer said. “Unlike the last week's worth of rallies, though, this one showed some wear and tear.”
The “Mad Money” host noted the Dow dropped into negative territory twice Wednesday, only to come back and finish strong. These rebounds matter, Cramer said, but what’s behind them?
To start, Cramer said money managers feel the need to perform well. Otherwise, they risk losing investors. As the year’s end draws near, hedge fund mangers are feeling a greater sense of urgency to finish the year strong. Instead of betting against this market, Cramer thinks they are using the dips to buy stocks. They are putting money to work because they are afraid not to, Cramer said. After all, they don’t want their investors accusing them of missing an opportunity to make money.
Meanwhile, Cramer said the U.S. Federal Reserve and other major central banks of the world are working to promote growth and confidence in European markets. There are a lot of pro-growth rumors out there that are inspiring investors to put their money to work in the markets.
—Reuters contributed to this report
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