Jim Cramer rebuffs Wall Street’s ‘knee-jerk negativity’ after Tuesday’s pullback

CNBC’s Jim Cramer on Tuesday pushed back against a downbeat sentiment he has felt on Wall Street, saying “knee-jerk negativity” is making investors lose money.

“In this business we’re supposed to care about companies and their profits, and the profits are, indeed, bountiful,” he said. “Yet the investing class is so scared and so negative because they buy into the narrative that everything’s about to roll over.”

The averages pulled back on Tuesday as investors worried about weaker-than-expected economic data and President Donald Trump‘s imminent plans to announce more tariffs. The S&P 500 dipped 0.49%, the Nasdaq Composite lost 0.65% and the Dow Jones Industrial Average fell 0.14%. The market has traded unevenly over the past few sessions. Stocks fell on Friday after the latest jobs report showed weakness in the labor market, but they largely managed to rebound on Monday.

Cramer gave a few reasons he’s feeling more optimistic about market opportunities, first saying he thinks that many companies are managing to mitigate the impact of tariffs. He pointed to Wayfair in particular, saying the furniture seller has a good strategy to keep prices down.

He also suggested that Wall Street should be more favorable towards Apple and Amazon, which he said reported great quarters. He conceded that the former needs a better artificial intelligence strategy and the latter needs better semiconductor chips. However, he said both of these problems are “money issues” that can be easily remedied by both companies.

Cramer also said there are too many people who believe Trump will hurt the market the way he did during “Liberation Day” back in April. But Cramer noted that the market managed to recover from those losses.

“I can still point out that the companies themselves are doing a bang up job in spite of all these negatives,” he said. “Or, more likely, perceived negatives. And that’s all that matters.”