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CNBC’s Jim Cramer on Monday reminded investors about the forces that truly move the stock market.
“Stocks don’t go down because people are in a bad mood,” Cramer said on “Mad Money.” “They go down because something goes wrong that impacts their businesses, and that something tends to elude investors both big and small.”
The trading action over the past 24 hours illustrates this point, according to Cramer. It started with a sharp drop in S&P 500 futures on Sunday night, following a weekend filled with political headlines, continued spikes in precious metals, and extreme snowstorms across large swaths of the U.S. However, by the time Monday’s closing bell came around, all three major U.S. indexes finished the day higher.
Investors tend to treat the Sunday night futures market — which opens at 6 p.m. ET — as a verdict on what will happen when regular trading kicks off Monday morning at 9:30 a.m. ET, but Cramer warned it’s often a bundle of worries that rarely reflect reality.
