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CNBC’s Jim Cramer said he thought Tuesday’s broad rebound on Wall Street was an “instant rally,” encouraging investors to be patient before jumping out to buy stocks.
The three major US stock indexes ended in the green on Tuesday, led by the 1.25% gain in the Nasdaq Composite. The S&P 500 was up 1.05%, while the blue chip Dow Jones Industrial Average added 311.75 points, or 0.92%.
“This is strictly a stimulus rally. It’s hard for these moves to last because there are still so many investors who want to exit. If we go higher, they’re going to hit the exits en masse,” the ” Mad Money “the host said. “As we approach the end of the month, I have told you that I will become more and more positive.”
Tuesday’s gains came after a tough Monday session in which tech stocks, in particular, suffered steep declines. It has been a tough few weeks for the market as a whole, with the S&P 500 down 4% over the past month. The Dow Jones and the Nasdaq fell about 3% and 6%, respectively, over the same period.
On Monday, Cramer suggested the market could experience a brief jolt after weeks of steady decline. “It was a decent rebound,” Cramer said of Tuesday’s market moves.
“You were lucky enough to take the lead earlier today, but now that we’ve bounced back I think you have to wait,” Cramer said on Tuesday. “No need to intervene on what could turn out to be quicksand. Just keep your bat on your shoulder and wait for the next opportunity to buy high quality stocks at better prices than you ever thought you could. get.”
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