CNBC’s Jim Cramer said Tuesday’s stock rally was made possible by cooling bond yields and favorable comments from Federal Reserve Chairman Jerome Powell.

“Sometimes there is just too much good news to ignore,” Mad Money host said after Dow Jones Industrial Averaged gained 0.51%, S&P 500 rose 0.92% and the tech-rich Nasdaq Composite jumped 1.41%.

Wall Street has had a difficult start to the year, with the stock markets struggling against a backdrop of rising bond yields, which move inversely with prices. Cramer said the movement in Treasuries was one of the main reasons so many stocks, especially those in the S&P 500, were sold in early 2022, especially by large fund managers and algorithmic traders. .

But with bond yields falling on Tuesday and Powell’s testimony to Congress emphasizing a data-driven approach to interest rate hikes, Cramer said this paved the way for investors to seek attractive stocks. to buy.

“We see the trees through the forest, so to speak. And it turns out that while the forest looked pretty terrible, there are enough healthy trees that it makes sense to buy some. “said Cramer, whose charitable foundation added on Tuesday. to its positions in Bausch Health and Danaher.

Cramer said other stocks came out of the crisis and performed well on Tuesday, including Amazon, after Morgan Stanley raised its price target. He also mentioned Apple, saying shares in the iPhone maker have finally been put on an offer after some positive research notes in recent days.

“The end result? When bonds finally go in the right direction and Jay Powell stays in thought, we get ourselves a stock pick market like we got today,” Cramer said. “You have to be prepared for this, because a stock market that dies by the sword of the bond market can also prosper from it.”

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