CNBC’s Jim Cramer said Wednesday that investors shouldn’t jump in despite signs of slowing activity in key parts of the economy.
Cramer’s comments come as high interest rates, geopolitical uncertainty and political opposition weigh on stock prices across industries. The U.S. housing market remains mired in a multi-year slump, IPO and M&A activity has slowed, and booming data center construction is facing new obstacles, leaving fewer catalysts to lift a key part of the market.
“Right now we’re seeing market after market freeze, and that’s killing stocks,” the “Mad Money” host said.
Housing is probably the most obvious example. of 30 year mortgage interest rate The rate has risen to about 7.5% from about 3% five years ago, leaving many homeowners tied up with cheaper mortgages reluctant or unable to move.
“Mortgage rates close to 7.5% have made buying a home the least expensive it’s been in 40 years,” Cramer said.
The economic slowdown has spread to housing-related stocks as a whole, including home construction companies. lenner and KB Home and retailers home depot and lowe’sboth hit 52-week lows on Wednesday. Declining home sales means less spending on home appliances, furniture, and renovations. swirlalso hit a 52-week low on Wednesday. Cramer’s Charitable Trust, a portfolio managed by CNBC Investment Club, owns Home Depot stock.
Capital markets, which were once booming, are also showing signs of slowing down. Kramer pointed to smart ring maker Oura’s decision to postpone its planned $2.2 billion IPO and Inspire Brands, parent company of Dunkin Donuts and Buffalo Wild Wings, to shelve the launch of its own products.
shares of morgan stanley and goldman sachs All of Wall Street’s major investment banks fell about 12% in September, hitting all-time highs of the year in July. Investing Club owns Goldman stock.
“Without an IPO or M&A, the big banking groups are frozen, except for fees,” Cramer said. “That’s not enough.”
The burgeoning data center industry is also facing new hurdles as political concerns over electricity costs and other impacts threaten to slow progress. This is a midterm election year, and the stakes are even higher as Democrats and Republicans compete for control of Congress.
But Cramer cautioned investors to stay out of the market, as headwinds could quickly turn into tailwinds. Most notably, the end of the war could cause oil and inflation to drop, prompting the Federal Reserve to halt further interest rate hikes and triggering strong stock market gains.
“It could happen in three days, and it will probably happen in the three most important days of 2026,” Kramer said. “That’s why I’m hesitant to leave the market at this point.”
If the economy begins to thaw, “then we effectively begin a bull market,” Cramer concluded.
