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Despite a ‘fraught' day for the market, Jim Cramer finds positives in Wednesday's action

Jim Cramer on Mad Money
Scott Mlyn | CNBC

Jim Cramer on Mad Money

  • CNBC's Jim Cramer reviewed Wednesday's session, saying that even though certain losses seem tough, there are reasons to be positive about the market.
  • "Let's break them down, because if this market feels like a minefield, it's a minefield of our own choosing," he said. "There are plenty of areas with clear paths if you're willing to look."

CNBC's Jim Cramer reviewed Wednesday's session, saying that even though the day was "fraught" and certain losses seem tough, there are reasons to be positive about the market.

"Let's break them down, because if this market feels like a minefield, it's a minefield of our own choosing," he said. "There are plenty of areas with clear paths if you're willing to look."

Stocks dipped on Wednesday following the Federal Reserve's first decision of the year, with the S&P 500 losing 0.47%, the Nasdaq Composite declining 0.51% and the Dow Jones Industrial Average sliding 0.31%. The Fed held rates steady after three straight cuts since September 2024. Its post-meeting statement said "labor market conditions remain solid" while "inflation remains somewhat elevated."

Cramer stressed that investors' worries about the Fed are likely overblown. He said President Donald Trump's win has brought a surge of economic activity the central bank had not predicted. The board is data-driven, and in no rush to cut rates. But Cramer said the market is in good shape as long as the Fed is willing to cut should the economy start to hurt. For now, he continued, solid earnings results matter more than monetary policy, as "good profits combined with a benign Fed equal higher stock prices."

Tech giants like Apple and Nvidia are currently hard to own, Cramer conceded. The former AI darling shouldered an almost $600 billion loss earlier this week, the biggest one-day loss in market history. Other sectors are performing well, he countered, including banks and healthcare. He also suggested there is a bull market in sectors like travel and leisure, which seems to have "no top."

"If you stop focusing exclusively on big tech, we've got a great market going," Cramer said.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple and Nvidia.

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