CNBC's Jim Cramer on Wednesday warned stock investors to take into account the possible downturn signal coming from the bond market.
"I've learned to never fight the bond market even when it's wrong," Cramer said on "Squawk on The Street," adding that "no one is willing to say," the bond market is wrong. ""  Cramer acknowledges the US economy seems to slow down, but feels there is not enough evidence to point to a recession, which is technically defined as two straight quarters of contraction in the economy.
"If the interest rate would just go, it's amazing I have to say this, if the interest rate would go a little, the market [stock] would want it," Cramer said. "I can't remember in my career increasing interest rates. It's nuts."
The Dow Jones Industrial Average fell more than 300 points on Wednesday, carefully tracking downs on returns, as investors took as a message from the bond market as a slowdown in the economy was ahead.
While US and China trade war attacks continue to intensify against the backdrop of some softer financial data, investors this month have been seeking security and buying Treasurys, sending government debt rates pushing and blurring for multi-year downturns. Bond prices and returns move conversely to each other. The decline in dividends has been more exhaustive on long-term bonds, which pushes the 1[ads1]0-year government tax rate during the 3-month government's note.
The so-called yield curve invasion of 10-year-old and 3-month – recently expanded to not spread since the 2008 financial crisis – has been seen on Wall Street as a sign of a downturn on the horizon.
The stock market has followed Treasury dividends lower, and from Tuesday's end, S & P 500 was nearly 5% for the month of May. The index opened sharply on Wednesday, with no resolution in view of trade and technology disputes between the United States and China, which has led to billions and billions of dollars worth of sanctions on each other's goods.
– CNBC Jessica Bursztynsky contributed to this report.