Sunday, June 22, 2025

Jim Cramer: ‘The US market needs an India deal’

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The US markets require positive catalysts, such as a potential trade agreement with India, said CNBC’s Jim Cramer on Wednesday. Cramer was commenting on a sharp decline in the US stock market indices as first-quarter gross domestic product (GDP) contracted by 0.3%, reversing a 2.4% gain in Q4.The Dow dropped 230 points (0.6%), the S&P 500 fell nearly 1%, and the Nasdaq slid 1.4%.
Addressing the market decline, Cramer suggested that if major indices fall below key support levels, they could retrace gains made since the previous Thursday.
“It’s a bad market, but for different reasons,” he remarked, reflecting a cautious tone amidst broader macroeconomic concerns.US-China trade deal

On discussions around a possible trade deal with China, Cramer noted that it would likely take the form of a memorandum of understanding rather than a full agreement in the near term.

“An actual agreement will take a long time,” he added.

Earlier, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the “reciprocal” tariffs Trump plans to impose.

Lutnick declined to identify the country, saying the deal was pending local approvals.”I have a deal done … but I need to wait for their prime minister and their parliament to give its approval,” he said.

US-India trade deal

White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: “India is coming along great. I think we’ll have a deal with India.”

While details on what a deal with India might look like remain unclear, Cramer hinted that the markets may already be pricing in some level of optimism.

He also addressed recent GDP figures and economic commentary from White House adviser Peter Navarro, noting concerns that rising imports could offset export gains and negatively impact growth figures.

“We’re in the hurt phase,” Cramer said, referencing a predicted period of economic pain.

Despite the bearish sentiment, Cramer encouraged investors not to lose perspective, pointing to upcoming earnings reports from major US companies.

“The market’s been really good. Don’t freak out,” he said. Highlighting corporate commitment, he cited tech giants like Apple and Nvidia, suggesting that companies investing hundreds of billions should be recognised, not penalised.

With inputs from Reuters

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