Jim Cramer says the bear market rally could become a real recovery

In a recent statement on CNBC, Jim Cramer expressed interest in spotting signs that the ongoing bear market rally could potentially evolve into a true stock price recovery amidst the day’s stock surge. Following a significant rise of over 2.5% in major indices, Cramer noted skepticism about whether the markets would sustain these gains or shift back to sell-off mode soon. While acknowledging the chance of a resumption in stock drops, Cramer emphasized that recoveries typically initiate as bear market rallies before developing further. He highlighted President Donald Trump’s recent assurance of not firing Federal Reserve chair Jerome Powell as a factor likely to drive stocks higher on Wednesday. According to Cramer, rallies like these do not occur instantly, and by the time concrete evidence emerges, the rally has likely been ongoing for some time. Cramer also outlined various potential indicators suggesting the market recovery could hold steady. These included discussions on the Dow Jones Industrial Average heading towards its worst April since 1932, emphasizing the Dow’s rebound that year after hitting a low point. He also mentioned that positive trade negotiations could uplift market sentiment, particularly if a country complies with Trump’s trade demands. Resolving issues with China could help prevent further conflict, although Cramer advised Trump to maintain a diplomatic approach in negotiations with President Xi Jinping. Cramer further noted that a decline in oil prices, lasting soft economic data, increased IPOs, and corporate mergers could contribute to a positive trajectory for U.S. stocks. He expressed optimism about the low likelihood of these factors derailing progress, indicating a positive outlook for the market in the future. Cramer concluded by stating that at some point, a breakthrough is expected, leading to a more favorable situation.