• CNBC's Jim Cramer reviewed Tuesday's market action, saying some of it seems more extreme than is warranted.
• "This market's so ridiculous, you can knock it over with a feather or take it up with a breeze," he said.
• While he acknowledged that the economy is slowing, he suggested that interest rate cuts from the Federal Reserve are imminent.

CNBC's Jim Cramer reviewed Tuesday's market action, saying some of it seems more extreme than is actually warranted.

"This market's so ridiculous, you can knock it over with a feather or take it up with a breeze," he said. "This isn't the worst of times, it's just the worst of times for the stocks in certain industries and the best of times for others."

The averages tumbled Monday as investors sold off tech stocks and worried about weaker-than-expected results from manufacturing data. The Dow Jones Industrial Average slid 1.51% while the S&P 500 dipped 2.12% and the Nasdaq Composite declined 3.26%.

A number of sectors suffered on Tuesday, and Cramer pointed to cyclical stocks like homebuilders, saying these companies aren't performing poorly, but sellers are worried solid business won't continue. While he acknowledged that the economy is slowing, he suggested that interest rate cuts from the Federal Reserve are imminent. After the cuts, he said, investors may regret selling stocks like homebuilders D.R. Horton and Lennar, both of which reported good quarters but finished Tuesday down 2.26% and 2.02% respectively.

Cramer also reviewed weakness in tech and chip stocks, pointing out the way Nvidia has become a "total pariah" on Wall Street. Shares of the artificial intelligence darling plummeted more than 9% on Tuesday, and the company shed nearly $300 billion in market cap. To Cramer, investors are concerned AI spending will peak and that the AI boom may be too good to be true.

But on the flip side, Cramer said, many packaged goods stocks saw "radical rallies in unison" that some may not actually deserve as investors anticipate a slower economy.

"To me, this whole decline — which, again, I have said is not done — will end up being too extreme. The situation isn't as bad as we think when it comes to all of AI tech," he said. "At the same time, the people who bought the consumer packaged goods stocks hand over fist — which has happened all session, betting on a recession — I think they've already gotten ahead of themselves."

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