On Monday, CNBC’s Jim Cramer analyzed the stock market’s recent performance, emphasizing the trend where tech stocks, particularly those leveraging artificial intelligence, are thriving at the expense of consumer goods and other sectors. He noted that growth stocks, especially in technology, are highly sought after regardless of their price, while companies lacking pricing power and low-yield options are being overlooked. Cramer highlighted that typical safe investments like Clorox and Procter & Gamble have become risky due to rising long-term interest rates, which negatively impact their attractiveness compared to Treasurys. He also pointed to the strong dollar affecting consumer goods that rely on overseas sales. Cramer expressed concern over the vulnerability of several sectors, including real estate, healthcare, and biotech, as they continue to struggle amidst persistent inflation. He warned that the Federal Reserve should be cautious about their monetary policy choices, suggesting that the declining stock performance of companies critical to the real economy might foreshadow earnings troubles. On the day, the S&P 500 rose 0.55%, and the Nasdaq gained 1.24%, while the Dow dipped slightly by 0.06%.
