Cramer on the sell-off: “It’s extremely tough to purchase quite a lot of shares whenever you see these case numbers.”
CNBC’s Jim Cramer said Wednesday that a lack of coronavirus stimulus is making it difficult for investors to buy stocks as the U.S. Covid-19 outbreak worsens.
“It’s very difficult to buy a lot of stocks when you look at these numbers,” Cramer told Squawk Box as US stocks headed for a sharp decline on Wednesday. The Dow Jones Industrial Average fell about 500 points, or 1.8%, shortly after it opened.
“And it’s a shame too, because with incentives we’d be very tempted to own some of those stocks,” added Cramer. “But right now I think everyone is just scared.”
The US has a 7-day average of 71,832 new coronavirus cases, which is a record high, according to Johns Hopkins University. In the past few days, hospital stays have also increased in more than 30 states.
Shares in Europe also fell on Wednesday as coronavirus cases increased in several countries and leading politicians like Chancellor Angela Merkel called for stricter business restrictions to slow the spread. The pan-European Stoxx 600 slipped more than 2.5%.
US investors are certainly watching the situation in Europe, Cramer said, which likely affected the negative sentiment for Wall Street. The Mad Money host, however, was concerned about the impact of tougher public health measures in America without further fiscal support from Washington, where the Democrats and Trump administration have been at a stalemate in business negotiations for months.
“The bans without the stimulus are what we’re seeing and I think it’s a shame because if there had been a stimulus then we’d be focusing on the revenue and the revenue is actually pretty damn good,” he said.