Cramer: Oil drop lifts stocks, Fed is next test — SkimNews
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- Cramer credited falling oil prices for Friday's stock rebound, with the Dow gaining 509 points (0.98%), the S&P 500 up 0.86%, and the Nasdaq up 0.96% after four straight losing sessions.
- Technology stocks led the recovery after positive post-earnings updates from Adobe and Oracle on Thursday evening; Cramer named Dell, Vertiv, Cisco, Marvell, GE Vernova, and Hewlett Packard Enterprise as potential enterprise software and data center beneficiaries.
- Cramer flagged the Iran conflict as the key swing variable for oil prices, warning that an Iranian drone-swarm attack on a carrier group would spike oil, push interest rates higher, and 'clobber' the stock market.
- The Federal Reserve's Open Market Committee meets Wednesday with consensus expecting a rate hike to rein in persistent inflation; Cramer noted the 30-year Treasury yield could actually fall if investors read the decision as evidence of inflation discipline.
- Salesforce's annual Dreamforce conference kicks off Monday in San Francisco, where Cramer will interview CEO Marc Benioff on Wednesday, with Cramer's Charitable Trust holding Salesforce shares.
- Lennar reports after Wednesday's close amid stubbornly high mortgage rates weighing on housing demand, while Brinker International and Intuit hold analyst meetings Thursday — Cramer remains bullish on Chili's parent Brinker and pushed back on AI-disruption fears at Intuit, citing recent strength in Salesforce and ServiceNow as evidence investors are shying away from selling established software names over AI risk.
Why it matters: Cramer framed Wednesday's Fed decision as the binary event of the week, warning that another rate hike would force bulls into 'fighting the Fed' in an already tough tape — and urged investors to be selective and avoid margin. Layered on top is a geopolitical tail risk in Iran that he says could single-handedly erase Friday's gains, leaving markets with little room for error into the FOMC.
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