Every weekday, the CNBC Investing Club with Jim Cramer provides an afternoon update titled “Homestretch,” which offers timely insights just before the final hour of trading. On Tuesday, stocks declined but recovered from their lowest points earlier in the session due to strong performance in the semiconductor sector. The market reacted negatively after interest rates surged following unexpected positive economic data, including a robust JOLTS job openings report and a strong ISM Services Index, leading traders to reconsider future interest rate cuts. The 10-year yield rose over 7 basis points, reaching around 4.69%.
In sector movements, the energy sector led gains due to slight rises in oil prices. Healthcare stocks notably improved, with all five in Cramer’s portfolio showing gains. Conversely, several high-performing momentum stocks, including Nvidia and Palantir, experienced pullbacks after prior highs. Consumer discretionary stocks weakened, particularly in auto and travel sectors. Looking ahead, no major earnings reports were scheduled for Tuesday, but Albertsons is set to report on Wednesday, alongside labor-related economic data. Subscribers to the CNBC Investing Club receive trade alerts from Cramer, with specific timing rules around execution.
