CNBC’s Jim Cramer spoke cautiously after the stock market closed on Wednesday.
There was mixed trading on Wall Street as the Dow Jones Industrial Average slipped while the S&P 500 and Nasdaq Composite posted gains on the trading day.
“I think this market is very light-hearted because we process more than 130,000 new cases every day.”Bad money“Host said.
Cramer advised investors to look out for three critical issues that could negatively impact the market: rising coronavirus cases, the controversial presidential election that Democrat Joe Biden is expected to win, and a collapse in stimulus spending negotiations in Washington.
“I hate to say it, but they do Cramer Covid-19 Index is back in the game if we get one of the nightmare scenarios I was just following, “said Cramer.” I’m not saying these nightmares … come true, “he added,” but when managing your money you need to consider potential risk factors. “
Texas, the second most populated American state, has now reached a dismal milestone as the first state to have 1 million registered Covid-19 cases. According to data from Johns Hopkins University, the state is the second largest state after New York state, which was heavily hit with deaths in the first few months of the coronavirus outbreak.
On Tuesday, the country set a new high for the 7-day average of daily positive tests at 121,153.
“Until our political leaders force bars and restaurants to close, I don’t see how we can get this thing under control,” Cramer said.
Investors have switched stocks on the stay at home issue in the context of optimism about Covid-19 vaccines, but experts warn that the Winter months could be brutal if the cases keep rising.
Cramer also warned that the market faces an uncertain future in the near future as President Donald Trump defiantly questions Biden’s proposed election victory. The uncertainty about upcoming stimulus talks is also in the host’s head.
“By denying the legitimacy of the elections and trying to combat it in every possible way, they are sure to destabilize the situation,” he said. “From the point of view of the stock exchange, that’s a problem.”