The shares are traded after the reopening of optimism, but there are risks

The stock market continues to open optimism, causing technology stocks to fall and cyclical stocks to rise in Tuesday’s session, said Jim Cramer of CNBC.

While major averages declined at the end, Cramer said the action was defined by a decline in consistent operators and an increase in sporadic stocks of growth and growth.

“It’s all about optimism, people. Investors are voting with their feet,” the Crazy Money host said. “I leave these secular growth stories, the stocks of companies that are doing well, whether the economy is hot or cold. Instead, they find their way to the shares of companies that make big money only when their business is booming.”

The comments come after the general market withdrew from Monday’s gains, which followed a tough sell-off last week. The Dow Jones industrial average fell 144 points to 31,391.52 on Tuesday, down 0.46%. The S&P 500 was down 0.81% at 3,870.29. The technology-intensive Nasdaq Composite fell 1.7% to 13,358.79.

Also, the S&P sector indices traded less during the session, except for materials. The discretionary parts of technology and consumers in the market had the most difficult displays, both indices that joined the Nasdaq down more than 1%.

Cramer said market activity reflects investors betting on the chances that citizens will soon withdraw their Covid-19 masks and states will soon drop coronavirus restrictions and bring the economy back to normal due to the country’s progress in vaccines. . However, there remains a tug-of-war between those who are optimistic and those who are cautious, he added.

The governors of Texas and Mississippi announced earlier Tuesday plans to remove masking warrants and all trade restrictions in their states.

“I bet we’ll soon be able to rip off our masks and get back to normal, and that’s the essence of this market right now,” Cramer said. “For now, the people who believe that our long national nightmare is coming to an end. They are the winners.”

He warned, however, that the market momentum is still vulnerable to risks. Cramer said the country could reopen too quickly and that variants of the virus, such as the strain first discovered in South Africa, could lead to further growth if the country lowers its guard.

While President Joe Biden expects to sign a $ 1.9 trillion stimulus package, which makes its way through Congress later this month, any hiccups in promoting the bill through the Senate could have an impact. on the market.

“There are still a lot of things that could go wrong,” Cramer said.