A view has emerged that to quickly read the direction of the U.S. stock market, investors should first look at three factors: bonds, oil prices and Nvidia.

On Aug. 11, CNBC cited Jim Cramer as saying investors do not need to chase every move in the market. He said three questions alone can quickly take the temperature of Wall Street. He said, "I learned early on that the averages don't always tell you everything."

Cramer singled out three variables: bonds, oil prices and Nvidia. He explained that they reflect interest rates and Federal Reserve policy, inflation and geopolitical risk, and the health of artificial intelligence trading, respectively.

The first question is, "Where are bonds right now?" Cramer noted that when Treasury yields rise, bonds become relatively more attractive than stocks and pressure for tightening at the Fed also increases. He saw yields as having entered a range that can no longer be ignored, with the 30-year U.S. Treasury yield around 5.2 percent.

He then stressed the influence of the bond market. He said, "No matter how important stocks are, don't forget that the bond market is much bigger and drives the whole game," adding, "When rates go down, the market is generally solid, and when rates go up, there's a good chance it won't be."

The second question is, "Where is oil?" Cramer said that when crude prices rise, inflation pressure increases and it can also provide clues to explain moves in the bond market. He added that oil has also become important as an indicator of geopolitical risk. That is because investors are watching conflict around Iran and its impact on the Strait of Hormuz.

He also drew a line against overreacting to small moves in oil prices. He cited that crude remains below its recent peak.

The last question is, "How is Nvidia?" Cramer described Nvidia as a barometer for as much as one-third to one-half of the economy. As investment in AI infrastructure spreads beyond the confines of traditional technology companies, he judged that Nvidia's report card provides clues to an expanding range of the economy.

He said, "It's not just because Nvidia is the biggest company on Earth," adding, "I ask this question because so much of this market depends on Nvidia's fate, AI's fate and the fate of data centres."