Amid news of explosions in Belgium's capital on Tuesday, stocks were justifiably down at the open, but then rallied for most of the afternoon and pulled back shortly before the close.
Jim Cramer explained the action on the market, stating "We call it the underlying bid. That is a term that means buyers are lurking underneath current prices and when those prices drop, people start buying."
By the end of the day, the stocks affected were those directly related to travel and leisure as they will have the most have a loss of business. Cramer added that the rest of the market was able to mount a comeback because there has been an underlying bid since stocks bottomed in mid-February.
Why didn't the terrorist attacks create a greater lasting decline in the stock market?
"I think that these attacks have, sadly, become a kind of thing that we expect to happen. They are tragic and gut-wrenching, but are now accepted as part of the firmament," Cramer said.