Rebound on Wall Street: Stocks Surge on Tariff Talk Hopes 4/8/25

SPEAKER_1 (0:00)

Don't just ride the index, seek to outperform it with FELC, the Fidelity Enhanced Large Capcore ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Capcore ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com/f-e-l-c.

Before investing in any exchange traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus and offering circular, or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC, member NYSC SIPC.

SPEAKER_2 (1:01)

Are you still quoting 30-year-old movies? Have you said, cool beans, in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcard, based on the February 2024 Nelson Report.

Jim Cramer (1:29)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

SPEAKER_2 (1:36)

Good Tuesday morning.

David Faber (1:37)

Welcome to Squawk on the Street. I'm David Faber. He is Jim Cramer. And we're live from Postline at the New York Stock Exchange. Carl's on assignment today. Let's give you a look at futures. Of course, if you've been paying attention, you know we are set up for a far higher open bit of a change to what we've been seeing of late, certainly.

When we get to the open, but that's still a half hour from now. Let's get to our roadmap. Of course, as you might expect, it is about that bounce and whether it will stick. Wall Street is looking for some reprieve. Of course, after suffering what had been the biggest equity losses we have seen in the broader market since the pandemic. Plus expanded Trump tariff threats. Now China is vowing to quote, fight to the end. That's a move which Treasury Secretary Besson calls a quote, big mistake. And we're also going to keep an eye on the health insurers. Good news if you own them. Stocks are up strongly. This after a larger than expected boost to the reimbursement of their Medicare Advantage plans. We will talk about that, Jim, as well. CMS had a call yesterday at 530, sort of explaining the rationale behind it. But of course, we got to start with the markets. I'm curious as to where your head's at. I've been trying to talk to as many people as possible, of course, both those who are allocating capital and those who are running companies. What's your take this morning, Jim?

Jim Cramer (2:56)

I think that those are running companies are saying, what the heck is going on here? We're trying to run our companies. Suddenly we find that a country that we've dealt with for a long time, we have to just say, wait a second, we're going to put a surcharge on. We're going to pass through. So the issue is who can pass through and who isn't? Who has pricing power? It's often like that. Who has scale? Who has pricing power? Who can tell the Chinese, listen, we're going to go away, of which then you have out-of-stock parts, and who says, okay, we'll split the tariff. When it comes to money managers, I think money managers are looking at this snapback and saying, listen, just ignore it or use it to get out because tomorrow is decision day and China's not going to blink. Japan will blink, by the way. I think a lot of people feel, wait a second, if Japan's willing to blink, then China should, but China's not going to. So when we come in tomorrow, it's going to be, well, China isn't blinking. Let's take numbers down. And numbers down, move stocks lower.

David Faber (3:53)

You know, I've heard two different points of view from the, let's call it the hedge fund community this morning, who obviously I talked to a lot, Jim. And I think they're both worth articulating a bit because they, one is, and I think that's being reflected to a certain extent in what we're seeing and the enthusiasm this morning for stocks, which is they're going to do deals. It's starting with Japan.