CNBC’s Jim Cramer said Tuesday that investors shouldn’t be locked out of the stock market by a barrage of bad news.
Stocks fell on Tuesday after a better-than-expected inflation report raised concerns about the Federal Reserve’s big 0.5-point interest rate hike next month. of Nasdaq While the decline was 0.74%. S&P500 With a 0.38% decline, the index failed to snap a three-session winning streak following Thursday’s post-election debacle. Artificial intelligence trade was also under pressure. Nvidia Despite the CEO scandal smoldering and Anthropic IPO valuations rising bullishly.
“In times like today, when you have a bull market and the next day you have a bear market and investors don’t seem to have any certainty, you have to think not only about what can go wrong, but also what can go right,” the “Mad Money” host said.
U.S. Treasury yields rose as the consumer price index beat expectations on Tuesday. Dallas Fed President Laurie Logan has suggested that two quick quarter-point rate hikes may be necessary. Just hours before the CPI announcement, Fed Director Christopher Waller supported another quarter-point rate hike, leaving the door open for a half-point rate hike. The market is now fully pricing in a quarter-point rate hike at the central bank’s December meeting, with a 12% chance of a half-point hike, according to the CME FedWatch tool.
Still, Cramer argued that an end to the Iran war could bring oil prices down significantly, easing inflation and reducing pressure on the Fed. “If oil suddenly drops to $40, that’s what the big oil refiners’ charts are showing.” Valero you say to me and you do walmart and costco “If we force prices on branded goods to go down, or if we make our own brands better for everything, we’re going to see CPI go down,” he said.Oil prices have fallen below $90 a barrel for the first time since August on hopes of easing in the Middle East.
Another potential catalyst is NvidiaDespite uncertainty surrounding CEO Jensen Huang’s relationship with a suspected Chinese spy. Cramer said strong earnings, a large-scale share buyback and Hwang’s temporary leave pending an independent investigation (longtime executive Ian Bach could serve as interim CEO) could help restore investor confidence. Nvidia stock fell for the second day in a row.
successful human Next week’s initial public offering (IPO) could further restore confidence in AI trading. According to the latest filing, Claude developers will price the product on November 18th, with trading expected to begin the next day. The company’s valuation could exceed $1.4 trillion on a fully diluted basis, significantly higher than the $965 billion valuation announced as part of a funding round in May.
Cramer said these developments, taken together, could create a more favorable backdrop for the stock. “The idea that everything can go wrong is not in my dictionary,” Kramer said. “I just need a little break. I’m sure I’ll get it.”
