Emotion Drove Yesterday's Market Drop, Jim Cramer Says

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Stocks are rising on Friday, June 12.

This followed a decline of nearly 7% in the Dow Jones Industrial Average on Thursday. Investors are worried that the economy could take longer to recover if the U.S. sees a resurgence in coronavirus infections.

In the U.S., there are over two million cases of the virus with over 113,000 deaths.

Texas now has over 81,000 cases, with over 1,920 deaths.

As of Thursday, Texas saw a spike of over 1,800 cases in a 24 hour period.

Houston officials said they were “getting close” to reimposing a stay-at-home order and could reopen a COVID-19 hospital set up but never used at a football stadium as virus cases rose, Bloomberg reported.

And Arizona’s case count totals 31,200 after reporting 1,412 new cases on Thursday. CNBC reported that cases in Arizona have climbed by nearly 300% since May 1, and have about doubled since Memorial Day.

The state’s hospitals, as of Wednesday were at over 80% capacity.

And North Carolina says that only about 13% of the state’s ICU beds are available due to the rise in coronavirus cases.

North Carolina has around 39,000 cases of the virus, with over 1,100 deaths.

Is it time to sell? Jim Cramer breaks down in the video above why yesterday's market action was built on emotion and why now is the time to own stocks. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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