Jim Cramer explains why the White House sent Wall Street to a panic – NBC New York

• Jim Cramer of CNBC said how President Donald Trump helped cause the intense decline on Monday, suggesting that investors are panic while reversing the course of his previous mandate.
• This time, Cramer said, the president seems to favor the most populist ideals, and his concern for the market has been in the background.
• “Of course, not many investors saw this come, and that is incredible to me, and shock for Trump’s change of attitude has terrified the men of money,” he said. “Practically during the night, they have decided that we are going to a recession, and it will happen fast.”

CNBC Jim Cramer He said how President Donald Trump helped cause Monday Intense declinesuggesting that investors are panic while reversing the course of their previous mandate. This time, Cramer said, the president seems to favor the most populist ideals, and his previous approach in the market has been in the background while setting on tariffs.

“Of course, not many investors saw this come, and that is incredible to me, and shock for Trump’s change of attitude has terrified the men of money,” he said. “Practically during the night, they have decided that we are going to a recession, and it will happen fast.”

The sales sales mentality that prevailed on Wall Street during the last weeks heated on Monday. He S&P 500 charge 2.7%, the Dow Jones industrial 2.08% and the Nasdaq compound He suffered his greatest lost since 2022, plummeting 4%. Investors are dismay by him uncertainty caused by Trump’s mercurial tariff policies, which could interrupt global trade and alienate American allies. Trump further fueled the fears of recession during the weekend, when he saying There is likely to “a transition period” for the economy.

Trump has sent the market to the tumult when indicating that it is not his approach, Cramer said. Like former President Joe Biden, Trump “seems to accept that shareholders … They are generally rich people, and who have done it well enough,” he continued. Investors, Cramer added, believe that the United States goes to the recession because it is a country of consumption, and consumers are threatened by the fight in the White House. Although he admitted that such comparison could be too extreme, he suggested that some investors compare Trump with former President Herbert Hoover, who raised tariffs that worsened the great depression. He also said that Wall Street is scared by a new challenge for the rise of artificial intelligence: the Chinese Startup Depseek, which I could have developed A way of executing cheaper and more efficient advanced technology and than current dominant players in the field.

Some of Monday’s frantic sellers obtained poor prices, Cramer said, added that some were also “cheated on their purchases”, because they bought recession -proof shares so quickly after the actions began to decrease. He recommended buying “some technicians and industrials and low banks in multiple here”, but said that it was kept out of the technological giants that he previously referred to as the “Magnificent Seven”, saying that such a high group does not exist anymore.

Cramer added that he does not believe that Trump be illuminated in his tariff policies just because the indices are in danger.

“The president can go back if he wants, but he really believes that these rates are the right thing, so they will probably continue to arrive without any delicacy, only the brute force.”

“Since President Trump was elected, industry leaders have responded to the first economic agenda of tariffs, deregulation and wear of President Trump’s American energy in investment commitments that will create thousands of new jobs,” said White House representative Kush Desai to CNBC. “President Trump delivered historical work, salary and investment growth in his first mandate, and is ready to do it again in his second term.”

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