Cramer says he and hedge fund billionaire David Tepper are confused by the market's recent rally

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CNBC’s Jim Cramer said Wednesday that he and hedge fund billionaire David Tepper are not sure why the stock market has rallied in recent days while the coronavirus pandemic continues to upend daily life in the U.S.

“I spoke to Dave Tepper yesterday and we were both kind of marveling, ‘Jeez it’s been bullish. Why?'” Cramer recalled on “Squawk on the Street.”

Cramer’s comments came shortly after Wednesday’s open on Wall Street, which saw the Dow Jones Industrial Average rallying one day after an over 900-point advance completely fizzled by the close.

While still in a bear market, the Dow as of Tuesday’s close gained about 24% since its coronavirus-driven March 23 low. A bear market is defined as a decline of at least 20% from recent 52-week highs. The Dow hit an all-time high in February before state stay-at-home orders around the nation went into effect.

In the past couple weeks, investors have been responding to bits of optimistic news in the fight against the coronavirus, including recent signs that new cases in the U.S. may be starting to slow.

“There’s a curious disconnect between when you speak to the companies, most of which are closed, and what’s going on in the market,” Cramer said. “I keep thinking maybe the market knows something we don’t.”

Cramer has often referenced interviewing Tepper in early February as a key moment in his understanding of the coronavirus. The Appaloosa Management founder said then the virus could be a “game changer” for financial markets. 

The “Mad Money” host also expressed caution Tuesday about the market’s bounce, arguing he thought Wall Street was more optimistic about a return to something resembling normal life than most Americans. 

“There is a happy days are here again Wall Street impression versus what I hear … people saying, ‘Can I get a mask? How do I get a mask? Do I want an N95?'” Cramer said then. “I don’t want to risk it. I think America doesn’t want to risk it.”

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