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BusinessJim Cramer says these two themes are determining how stocks trade right...

Jim Cramer says these two themes are determining how stocks trade right now

CNBC’s Jim Cramer stated Monday he believes Wall Street is taking its cues from two major areas right now, and inventory market buyers should be plugged in accordingly.

“There are two major themes going on right now: supply chain disruption … and that’s including energy shortages, and the fact that interest rates are going higher,” the “Mad Money” host stated. “You need to know about these two themes every minute of every day if you’re going to pick stocks because that’s what’s driving the averages.”

Cramer’s feedback got here after a combined session for stocks Monday, throughout which the blue-chip Dow Jones Industrial Average gained 71 factors, or 0.2%, whereas the tech-heavy Nasdaq declined 0.5%. The broad S&P 500 fell 0.3%.

The transfer in stocks got here because the yield on the 10-year Treasury observe briefly topped 1.5% to hit its highest degree since June. The bounce in bond yields, which transfer inversely to costs, put stress on growth-oriented stocks, lots of which are within the expertise sector.

Stock picks and investing developments from CNBC Pro:

All three main U.S. fairness indexes are decrease for September, a traditionally powerful month on Wall Street. The Dow is decrease by 1.4%, whereas the Nasdaq and S&P 500 are down 1.9% and 1.76%, respectively.

Cramer has described his total market outlook as impartial in current weeks, citing the seasonal headwinds and uncertainty on quite a few components resembling Covid hospitalizations, the well being of the labor market and coverage negotiations in Washington.

However, Cramer has stated he sees some alternatives to purchase particular person corporations into weak point. For instance, he stated Monday buyers who’ve long-term horizons can add shares of “best of breed” tech companies resembling Amazon, Apple and Salesforce after these stocks obtained dented by the rise in bond yields.


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