Jim Cramer says strong January jobs report shows the economy can handle more rate hikes

CNBC's Jim Cramer connected Friday said that the January jobs study shows that the system volition stay resilient, contempt the Federal Reserve's involvement complaint hikes.

"If the Fed Chief wants to rise involvement rates 4th aft quarter, this system tin really grip it. And that's the existent takeaway from this astonishing occupation maturation number," helium said.

The U.S. system added 517,000 jobs successful January, crushing the Dow Jones estimation of a 187,000 gain. That marks the biggest summation successful nonfarm payrolls since July 2022.

Stocks teetered connected the quality but yet slipped to extremity the trading session. The S&P 500 fell 1.04%, portion the Nasdaq Composite declined 1.59%. The Dow Jones Industrial Average shed 0.38%.

Cramer said that portion stocks fell due to the fact that the marketplace is successful "good quality is atrocious news" mode – the stronger the system is, the much the Fed volition apt person to rise involvement rates – the marketplace inactive held up, much oregon less.

"My instrumentality is that the comeback from the archetypal antagonistic absorption successful the banal marketplace today, earlier a determination little successful the afternoon, has to bash with faith. Faith successful reasoning that determination won't beryllium a recession. Faith that if the Fed wants to deed america with 1 oregon 2 much complaint hikes, we'll beryllium fine," helium said.

The beardown economical information comes aft the Fed connected Wednesday raised involvement rates by a 4th percent point. Chairman Jerome Powell signaled that the cardinal slope isn't done raising rates contempt economical indications that ostentation is cooling down.

Cramer said that portion the Fed inactive wants to tamp down ostentation more, helium believes a terrible recession is "near impossible" with occupation maturation being truthful strong.

"Anyone who thinks the Fed volition person to swiftly chopped rates aboriginal this twelvemonth due to the fact that the economy's excessively anemic [is] intelligibly fooling themselves," helium said.