Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market bounce: Stocks made a strong comeback from their initial premarket lows. There are three key developments behind Friday’s rally. You had a deeply oversold S & P 500 Short Range Oscillator , which showed there was a heavy amount of selling pressure in the market. We provided some historical context around a minus 8% Oscillator early Friday — noting it’s usually been a good time to buy with a 30-day view. It’s rare to see the Oscillator this oversold, explaining why we held our nose and made several buys over the past two sessions . In general, a market this oversold means there’s plenty of tinder for a rally and any bit of good news will provide the spark. We got that spark before Friday’s open when the personal consumption expenditures (PCE) price index, the Federal Reserve’s favorite inflation gauge, came in slightly cooler than expected in November. The data jump-started a big bond price rally, meaning yields fell. Surging Treasury yields have recently been an enemy of stocks. The stock market bounce kicked into high gear after Chicago Fed President Austan Goolsbee was interviewed on CNBC. He’s been a thought leader in the Fed and is a voting member in 2025, so the market listened to his words carefully. While acknowledging he’s on the
