Jim Cramer says two of his biggest worries about the stock market are now off the table

CNBC’s Jim Cramer said a pair of major investment concerns have been resolved in the near term, suggesting that’s a reason for the stock market’s Wednesday rally.

“While I’ve still got plenty of worries, two of the biggest have now been taken off the table,” the “Mad Money” host said, after the Dow Jones Industrial Average and S&P 500 snapped four-session losing streaks.

One resolution came from the Federal Reserve, which maintained its highly accommodative monetary policy after the central bank’s policymaking arm held a two-day meeting. That meant the investors who were concerned the Fed may announce a policy tightening due to high inflation were proven wrong and needed to respond, Cramer said.

“If you were one of the inflation hawks who thought the Fed would have to take a tough line today, then you have to go buy stocks now because [Fed Chairman Jerome] Powell … has put the concerns to rest,” Cramer said, explaining that money managers cannot “refuse to buy stocks” simply because they disagree with the Fed chief’s policy.

“They have investors and those investors won’t forgive them for sitting out on a rally that they don’t think should happen,” he said.

Cramer said the second worry was resolved in China, when the struggling property developer Evergrande indicated it would complete a payment to onshore bond holders. Earlier this week, Wall Street grew increasingly concerned about financial contagion stemming from Evergrande possibly defaulting on its large debt load.

“Evergrande’s got another big bill coming due tomorrow, the one they owe foreign bond owners. Those foreign bond buyers are mostly from countries that are totally on the hook to China,” Cramer said. “So, they’re not going to care about these bonds. They’ll just take the hit,” he added. “That’s why, despite what you heard in the press, the risk from Evergrande never really was systemic because everybody wants to do business with China, so they’re just willing to overlook losses.”

Cramer has been cautious on the market in recent weeks during what’s a historically challenged period for stocks. The “Mad Money” host has said he sees a large number of risks weighing on Wall Street and believes many of them need to be resolved before the market can meaningfully shake off its September struggles.