Cramer says 'frozen' conditions are holding back stocks, cites high mortgage rates and slow IPO activity
CNBC's Jim Cramer stated on Wednesday that several key parts of the U.S. economy have effectively frozen, hindering stock performance. He highlighted that the 30-year mortgage rate has climbed to approximately 7.5%, making housing the least affordable in 40 years. This slowdown has impacted housing-related stocks, with Home Depot, Lowe's, and Whirlpool hitting fresh 52-week lows on Wednesday. Additionally, IPO and M&A activity has slowed, exemplified by Oura postponing its $2.2 billion IPO, while Morgan Stanley and Goldman Sachs shares declined roughly 12% in September. Even the data-center industry faces new obstacles due to political concerns. Despite these headwinds, Cramer cautioned investors against abandoning the market, suggesting that an end to the war could lower oil and inflation, potentially prompting the Federal Reserve to reconsider interest rate hikes and unleash a stock rally.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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