CNBC's Jim Cramer examined Tuesday's market action, saying the rally fueled by the victory of President-elect Donald Trump took a breather as Wall Street weighs what broad tax cuts could mean for the bond market.
Cramer called the day's moves a "sobering reaction to the potential unfunded tax cuts from the bond market," as both the 10-year and 2-year Treasury yields surged more than 4%.
The bond market and the stock market usually have a negative correlation, with investors coming in and out of each depending on yields.
Trump campaigned on the promise of tax cuts across a wide swath of sectors.
Many on Wall Street expect these cuts will come in aggregate, but remain unsure of the specifics, Cramer noted.
Persons:
CNBC's Jim Cramer, Donald Trump, Cramer, Trump, Elon Musk
Organizations:
Dow Jones, Nasdaq
Locations:
U.S