‘I don’t mind a day like today’
CNBC’s Jim Cramer reviewed Tuesday’s sell-off, describing why some market leaders related to enterprise software and the data center declined, but said he wasn’t too worried about the losses.
“Honestly, I don’t mind a day like today. The stocks that got hammered had all gone parabolic, you’re supposed to ring the register,” he said. “Today was day two of the sell-off and you know what? Most likely more to come.”
The averages dipped during the day’s session, with the Dow Jones Industrial Average declining 0.35%, the S&P 500 sliding 0.3% and the Nasdaq Composite losing 0.25%. According to Cramer, the downward action indicated that hot sectors might have been due for a cool down.
He explained that data center and enterprise software stocks have had visible momentum in large part due to the rise of generative artificial intelligence and its ringleader, Nvidia.
According to Cramer, some of the day’s moves may have been triggered by Oracle, whose quarter failed to meet the lofty expectations many on Wall Street had set. The loss rippled out towards related companies, he added, naming Dell, Hewlett Packard Enterprise and Super Micro Computer. But Cramer noted that he found Oracle’s quarter to be positive, especially its AI business. He also noted other enterprise software names that tumbled, including MongoDB, AppLovin, Workday, Atlassian, Datadog, BILL, Monday.com and Twilio.
“Today was about reversing the enterprise software, datacenter, semiconductor rally, and in its stead we got the money flowing back to its rightful industrial place, led by Boeing, which guess what — it’s back in the business of making planes again,” he said.
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