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An economic depression or a sustained, long-term downturn in economic activity looks less likely, although stocks could still witness more sell-offs, according to CNBC’s host and a former hedge fund manager Jim Cramer. 

Markets have been buoyed this week by positive developments on the coronavirus front. On Monday, Moderna announced “positive” results from an early-stage human trial of their preventative vaccine, sending the US stocks higher. Scientists, however, have raised questions about the authenticity of the so-called groundbreaking development.

Cramer, however, feels that the event has injected confidence in the market. “Even if Moderna’s vaccine news was blown out of proportion by people who need some remedial statistics lessons, the fact is that we’ve probably taken a depression off the table,” said Cramer. 

However, Cramer warned that the market may see some sell-off. “I’m not saying this market’s done going down. There’s always the possibility that we get more sell-offs,: said Cramer.