Jim Cramer on Moderna vaccine-sparked rally: 'Let's not get ahead of ourselves'

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Jim Cramer on Moderna vaccine-sparked rally: 'Let's not get ahead of ourselves'
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'This market does have a tendency to bounce between unbridled optimism and total despair — no middle ground,' the 'Mad Money' host said.

The tech-heavy Nasdaq is now up slightly on the year for the first time since markets dropped into bear territory due to the pandemic. The Dow remains down more than 16% from the beginning of the year, while the S&P 500 is within 11% of its 2020 start.

Moderna plans to study the potential Covid-19 vaccine on 600 participants and is eyeing to start a phase three trial by summer. Moderna and China's CanSino Biological are the only two companies in the phase two stage for a vaccine candidate. Inovio Pharmaceuticals is the only other U.S. drugmaker to have begun human trials on a vaccine. A reportedDespite the positive developments on the vaccine front, investors should be reminded of negative economic activity, Cramer said.

"This Panglossian worldview says you have to ignore tomorrow's hideous non-farm payroll number, because it's all rearview mirror," he said. "If there's a vaccine around the corner, then you have to believe the economy's bottomed and the future's bright."

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