Jim Cramer, the host of CNBC’s “Mad Money,” has advised investors to hold off on making any major decisions in response to the recent market turbulence.
What Happened: Cramer, on his show, discussed the market’s volatile behavior on Tuesday, advising investors to exercise caution, reported CNBC on Tuesday. He noted that the market experienced a reversal on Tuesday, with major tech stocks taking a hit while other sectors, such as banks, automakers, and steelmakers, saw gains.
The Nasdaq Composite dropped 0.76%, the S&P 500 fell 0.06%, and the Dow Jones Industrial Average rose 0.35%.
"There's just too much noise here, let's just wait and see," he said.
"Let's sit on our hands and process all the information coming at us before we take any action."
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Cramer urged investors to pay attention to the earnings reports that were due on Tuesday night and to take note of analysts’ reflections. He highlighted that while Microsoft MSFT reported strong revenue growth from its cloud business, Alphabet’s GOOGL advertising revenue fell short of expectations, and AMD’s AMD first-quarter forecast was below Wall Street’s predictions.
He posed the question, “Are these all island reversals that are just too difficult to overcome, where the stocks open up big and then plummeted? Or is tech taking a breather until some of that juicy money from the sidelines takes advantage of the first price break of 2024?”
Why It Matters: The recent market turbulence follows a warning by JPMorgan Chase & Co.’s quantitative strategists about the concentration of market power in the hands of the top 10 stocks on the MSCI USA Index, including the ‘Magnificent Seven’ technology giants. This concentration was likened to the market conditions during the dot-com bubble of the early 2000s.
Analysts have also highlighted the significance of the current earnings season for big tech companies, with Gene Munster of Deepwater Asset Management, calling it a “Big Week for Big Tech” and discussing the “pressure points” for each of these companies.
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