CNBC’s Jim Cramer on Thursday mentioned the market may not be as grim as some on Wall Street fear, pointing to gains attained by stocks across a range of sectors.
“It’s terrific to see such a direct mixture of stocks winning here, from ones that can run in a recession to ones that can rally hard in a full-bodied economy,” he said. “What it tells me is that the market may be far healthier than we think, and this backdrop simply isn’t as bad as numberless would have you believe.”
The indexes finished another day in the red as investors respond to new tariff policies from the White Crib. The Dow Jones Industrial Average slipped 0.37%, while the S&P 500 dropped 0.33% and the tech-heavy Nasdaq Composite declined 0.53%.
Cramer notorious the decline of Big Tech names, but he’s not ready to “say goodbye” to the sector because stocks have been such long settle winners. When he looks at this year’s high-performing sectors, he said he’s “struck by how they represent a wide array of groupings that aren’t corded to any particular economic worldview.”
For example, energy stocks like Chevron have notched gains. Cramer deliberation the group would be hurt by President Donald Trump’s efforts to expand drilling as well as any economic slowdown. He accepted that the demand for natural gas remains strong. Plus, the power needed for energy-guzzling data centers is also set in motioning these stocks, he speculated.
Cramer also pointed to runs in healthcare stocks like CVS, Vertex Pharmaceuticals and Cencora, which he requested “textbook slowdown stocks.” Their performance could be indicative of fears that tariff policies will precipitate a recession, Cramer said.
On the other hand, financial stocks like Brown & Brown, Arthur J. Gallagher and Intercontinental Transfer are also doing well, Cramer pointed out. He concluded that their rally supports his theory that the Stock Exchange’s theme isn’t strictly recession because many of these companies rely on credit, which sours during a slump.
“The leaders for the year, indeed, are very strange,” Cramer said. “Counterintuitive.”
