CNBC’s Jim Cramer said that as stocks saw a strong rally on Tuesday, he’s watching closely for indications that this bear market bounce could turn into a true rebound in stock prices.
With all major indices finishing the day up more than 2.5%, Cramer mentioned he encountered considerable doubt about whether the market’s upward momentum would last, or if it would soon return to a downward trend, according to CNBC report.
He acknowledged that stock declines could resume, but noted that recoveries typically begin as bear market rallies before evolving into something more substantial. Cramer also mentioned that President Donald Trump’s statement after Tuesday’s market close—confirming he won’t dismiss Federal Reserve Chair Jerome Powell—is likely to boost stocks on Wednesday.
“When you get this kind of rally, it doesn’t happen because someone gave you the green light to start buying. By the time there’s definitive proof, usually the rally’s been going on for a while,” Cramer was quoted as saying.
With that perspective, Cramer highlighted several signs that could indicate the market recovery has staying power.
To start, he noted that while there’s been a lot of talk about the Dow Jones Industrial Average being on track for its worst April since 1932—during the early years of the Great Depression—this overlooks the fact that the Dow actually hit bottom that year and went on to recover throughout the rest of the decade.
When will market sentiments improve?
Cramer also pointed out that successful trade negotiations could significantly improve market sentiment. According to him, if just one country agrees to Trump’s tariff-related demands—such as shifting manufacturing back to the U.S.—it could spark a broader wave of trade concessions.
He emphasized that a resolution with China would be especially beneficial in preventing deeper conflict. However, he advised that Trump should approach talks with President Xi Jinping with diplomacy rather than aggression.
Cramer added that a continued decline in oil prices could give a boost to U.S. equities. A further drop in crude might prompt the Federal Reserve to cut interest rates, aligning with Trump’s persistent calls for lower rates and stabilizing the bond market.
Additional positive signals for the stock market, Cramer said, would be weak economic data—which could increase the likelihood of a Fed rate cut—as well as an uptick in IPOs and corporate mergers.
Overall, Cramer believes the chances of all these potential catalysts failing are slim, offering reason for cautious optimism.
“Sooner or later, somebody’s got to blink, all right? Doesn’t matter who. And when that happens, we’re going to be in much better shape,” Cramer said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
First Published
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23 Apr 2025, 01:00 PM IST
