Prominent market commentator Jim Cramer has said growth stocks could witness another beating if the October consumer price index reading indicates inflation is still running rampant, reported CNBC.
“If we get a steaming hot CPI reading, you’re going to see more horror on your screen, so that’s why people sold ahead of it,” Cramer said according to the report.
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Investors and traders are keenly awaiting the inflation data release on Thursday that will be a key gauge for the Federal Reserve in affirming its near-term rate hike path. The SPDR S&P 500 ETF Trust SPY ended Wednesday’s session 2.06% lower while the Vanguard Total Bond Market Index Fund ETF BND gained 0.14%.
In recent weeks, Cramer is said to have advised investors to keep away from semiconductor and tech stocks, including Meta Platforms Inc META, Amazon.com, Inc. AMZN, Apple Inc AAPL, Netflix Inc NFLX and Alphabet Inc GOOG GOOGL, according to the report.
“When rates go up, you immediately get this knee-jerk sell-off in virtually everything, but especially in tech,” Cramer said. “Some of these companies are doing much better than others, yet they all trade the same,” he added.
On Inflation: Cramer drew more attention to Thursday’s inflation data, at a time the focus is squarely on the latest crisis in cryptocurrency markets.
“As you fret about how crypto can bring down the whole market need I remind you that until a week ago only a very few knew who SBF was or is or whatever.. Eye on the prize is a decline in inflation... although it will be tough to deal with 'non-core' tomorrow,” Cramer tweeted.
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