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CNBC’s Jim Cramer voiced concern about the staying power of the stock market’s bounce Tuesday following President Donald Trump‘s latest tweetstorm on China trade and Monday’s sharp decline.
“I don’t trust this market at all,” Cramer warned on “Squawk on the Street” as stock futures pointed to a higher Wall Street open, which in fact came to pass through the morning. “[Trump] has made it so we got to wait to be able to buy.”
Cramer said he was troubled by Trump’s barrage of tweets Tuesday, calling them “a little erratic,” including the one about the Federal Reserve.
Trump is “really disturbing the zeitgeist of the stock market,” Cramer said. “He should knock the tweets off if he wants the Dow to start going up, at least today.”
On “Mad Money” on Monday evening — after the Dow Jones Industrial Average and the S&P 500 each lost about 2.4% on China’s tariff response to last week’s U.S. hike — Cramer said Wall Street is nearly oversold and investors should get ready to load up on names that can withstand higher tariffs.
However, in light of the uncertainty around Trump’s new tweets, Cramer on Tuesday advised investors to let things shake out, saying there may be a buying opportunity in stocks later in the session.
In late morning trading, the S&P 500 was making up about half of Monday’s losses, which had sent the index down for a total of nearly 5% from its May 1 intraday all-time high. So far in 2019, the S&P 500 has gained about 13% — and since the crushing Christmas Eve 2018 low, the index has soared more than 20%.
On Monday, China said it will raise tariffs, some to as high as 25%, on $60 billion in U.S. goods, in retaliation for the Trump administration’s decision last week to increase duties on $200 billion worth of Chinese products from 10% to 25%.
Meanwhile, the Office of the U.S. Trade Representative is taking steps to prepare to slap tariffs on the remaining billions and billions of dollars worth of Chinese goods coming into the U.S.