U.S. stocks on Wednesday ended in negative territory for a second day, as both the Dow Jones industrial average and S&P 500 index logged their biggest decline since March 6 and the Nasdaq suffered its worst day of the year.
“Boy, people give up on this market really fast,” Jim Cramer complained. “You could practically hear the people cursing out the darned thing as if it's been on a terrible losing streak, rather than the best winning streak since 1998.”
Investors forgot that the U.S. is driving the markets now, Cramer said. Instead, they were spooked by ongoing worries over the euro zone. Spanish borrowing costs jumped at its bond auction, fueling worries in other European markets and overshadowing a successful step back into debt markets by neighboring Portugal.
The ECB kept interest rates at a record low of 1 percent. In addition, ECB President Mario Draghi said in a news conference that inflation is likely to stay above the 2 percent target for the year, but said talk of an exit was premature.
In the U.S., minutes from the Federal Reserve's latest meeting on Tuesday suggested that policymakers' appetite for another dose of quantitative easing significantly decreased, amid the improving U.S. economy. Still, members of the Fed remained cautious about a broad recovery, especially on the jobs front.
In turn, commodities also declined sharply across the board with gold trading near three-month lows and crude oil hitting a six-week low. But Cramer noted that neither oil nor gold are directly correlated to Fed policy. Instead, they are tied to supply and demand. And demand for both is increasing, while supplies are limited.
All things considered, Cramer isn’t ready to adopt a bearish attitude just yet, though. He acknowledged some “slowing data” has been reported out of the U.S. lately, but there has been a lot of good news, too. Ford Motor, for example, boosted the number of cars it expects will be purchased.
Cramer reminded viewers that we just got through the best quarter in 14 years, so he can’t blame investors for taking profits right now. In the end, he thinks this is just a little rain rather than a storm a brewing.
—CNBC.com with wires
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