Jim Cramer Says Tuesday Rally Was Driven By Nvidia, Eli Lilly And Other 'Stocks Reacting Positively To Good Earnings Per Share News'

U.S. stocks experienced a rise on Tuesday following consecutive losses for the S&P 500 and Nasdaq.

What Happened: This positive turn occurred despite a slightly warmer-than-expected February consumer price index. As per CNBC’s Jim Cramer, the market’s gains were largely unrelated to the CPI, but instead tied to “a lot of stocks reacting positively to good earnings per share news.”

"We're getting lucky that the S & P is up like this," Cramer said.

JPMorgan CEO Jamie Dimon expressed optimism about the U.S. economy on Tuesday, suggesting the Fed should hold off on interest rate cuts until after June. While acknowledging the possibility of a recession, Dimon believes the market is pricing in a soft landing.

See Also: This Could Be A Gamechanger For Natural Gas In Europe

Cramer echoed Dimon’s optimism, attributing positive equity movements to solid corporate earnings and ongoing interest in artificial intelligence. This was reinforced by Oracle’s ORCL strong quarter, attributed to AI strength, which boosted shares by approximately 11%.

Nvidia NVDAEli Lilly LLY, and Costco COST also saw gains on Tuesday, after suffering losses on the previous two trading days. Cramer, however, expressed concern about these stocks moving in unison, hinting at a potential risk to portfolio diversification.

As for Broadcom AVGO, which has not been tied to the group’s performance, Cramer sees a potential buying opportunity due to its attractive low multiple status.

See Also: Bitcoin Vs. Ethereum Vs. Shiba Inu Vs. Doge: How Much You Would Have Now If You Had $1,000 Invested In Each Of The Crypto At Start Of Current Bull Run

Why It Matters: Cramer’s recent observations align with his previous comments on the market. He has previously emphasized the growing wealth gap and its impact on the economy, highlighting the challenges faced by the average consumer in affording basic necessities and investing in stocks such as Nvidia.

He has also encouraged investors to gear up for a potential market sell-off and be ready to make purchases if undervalued stocks dip. Cramer has dismissed the notion of sector bubbles and emphasized the increasing artificial intelligence (AI) sector and the possible overvaluation of some AI stocks.

Read Next: Trump Admits To Bitcoin Transactions, Acknowledges Utility: ‘Not Sure That I’d Want To Take It Away’

Image Via Shutterstock


Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.


Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesNewsMarketsartificial intelligenceConsumer Price IndexKaustubh BagalkoteNASDAQS&P 500Jim Cramer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!