Cramer says 'frozen' conditions are holding many stocks back. Here's what could change that — SkimNews
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- Cramer declared on Wednesday that "market after market is getting frozen right now and that's killing stocks," blaming high interest rates, geopolitical uncertainty, and political opposition.
- The 30-year mortgage rate has climbed to roughly 7.5% from about 3% five years ago, making housing "the least affordable it's been in 40 years," according to Cramer.
- Home Depot, Lowe's, and Whirlpool all hit fresh 52-week lows on Wednesday, while homebuilders Lennar and KB Home also came under pressure from the housing slowdown.
- Smart ring maker Oura postponed its planned $2.2 billion IPO, and Inspire Brands — parent of Dunkin' Donuts and Buffalo Wild Wings — shelved its own offering.
- Morgan Stanley and Goldman Sachs each declined roughly 12% in September and had already set their highs for the year back in July.
- Even the data-center buildout is facing obstacles from political concerns over electricity costs, with stakes raised by this being a midterm election year.
- Cramer argued an end to the war could push oil and inflation lower, potentially prompting the Fed to take another rate hike off the table and trigger a powerful rally.
Why it matters: The freeze is showing up in concrete damage: Goldman Sachs and Morgan Stanley each shed roughly 12% in September as IPO and M&A pipelines dried up, while Home Depot, Lowe's, and Whirlpool hit 52-week lows as the 7.5% mortgage rate suppresses housing turnover and related spending. Cramer's contrarian hold call hinges on a single binary trigger — war ending — which he says could shift the Fed's rate path within days.
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