After a challenging month of April for the markets, CNBC’s Jim Cramer analyzed the market action on Tuesday, attributing the stock decline to concerns over interest rates. The major averages closed lower, marking the end of a disappointing month where all three indices broke a five-month winning streak. The Dow Jones Industrial Average experienced its worst monthly performance since September 2022.

Cramer highlighted the significance of the Federal Reserve’s rate decisions on Wall Street sentiment, particularly as the two-day meeting was set to conclude on Wednesday. The anxiety stemmed from the unexpected increase in the Employment Cost Index, which measures workers’ pay, causing investors to react negatively to strong economic data.

Investors have been holding onto hopes for multiple rate cuts this year, leading to selling pressure whenever positive economic indicators emerge. Cramer expressed optimism that Fed Chair Jerome Powell’s comments following the meeting could reassure investors and stabilize the market if they indicate a decision to maintain current interest rates rather than raise them.

Recent data, including a decline in consumer confidence and signals of a weakening economy from the Chicago Purchasing Managers’ Index, have added to the uncertainty in the market. Cramer suggested that acknowledging positive signs could help restore confidence among investors and potentially shift market dynamics.

As the month ends and the market looks ahead, the focus remains on the Fed’s stance on interest rates and its impact on investor behavior. Cramer’s insights provide valuable perspectives on the current market conditions and the factors influencing investor sentiment.