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Major indices in world stock markets experiencing another decline

22 April 2025 10:10 (UTC +04:00)

The major averages ended Monday’s session down over 2%, settling at over a one-week low, dented by President Donald Trump’s comments against Federal Reserve Chair Jerome Powell and the lingering risk of a recession due to the "reciprocal tariffs," APA-Economics reports citing investing.com.

The Dow Jones Industrial Average and the Nasdaq Composite Index have now declined four straight sessions.

While speaking on the "Mad Money" segment, Cramer said the market’s string of losses was "manufactured," stoked by "bigger economic forces" rather than anxiety over the strength of corporate earnings.

"Just like 2011, it’s a very manufactured crisis — something totally man-made that can be un-made with the stroke of a pen," he said. "I think that means it will go away, but not before the market tests lower levels."

The stock picker said it was similar to the 2011 financial crisis in Europe, where many countries resorted to deficit spending and found it challenging to pay off debt.

He noted that earnings did little to quell trader anxiety at the time, and it took efforts from the then European Central Bank President Mario Draghi to soothe the market’s nerves.

While reassuring that the central bank would do whatever it took to resolve the crisis, Draghi also took steps to ease the debt crisis by buying bonds from the affected euro area countries.

Cramer said the only difference between the 2011 crisis and the current downturn is that the problems related to the U.S. alone.

The CNBC host listed the factors causing the current market setback, including tariffs and the ensuing uncertainty, Trump’s threats of firing Powell that could lead to a constitutional crisis, and the debt ceiling issues.

He said, "Long story short, we need to get used to a market that’s down every morning because the earnings won’t matter in this environment."

"It will be the tariffs and the talk about firing Jay Powell that define this period."

FactSet’s weekly earnings insight report released Thursday showed that aggregate earnings of S&P 500 companies are set to rise 7.2%, marking the seventh consecutive quarter of year-over-year earnings growth for the index.

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Monday’s session down 2.38% at $513.88, while the Invesco QQQ Trust (QQQ) ETF slumped 2.47% at $433.11.

The SPY and QQQ are now down over 12% and 15%, respectively, for the year-to-date period.

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