USA

‘It’s back to business as usual’

CNBC’s Jim Cramer analyzed Monday’s session, saying stocks, especially tech names, managed to rebound from last week as Wall Street saw the government shutdown end.

“With the government about to potentially reopen, it’s business as usual and that means data center stocks are bouncing back quickly,” he said.

Indices rose during the session Dow Jones Industrial Average finished at 0.81 percent S&P 500 Technology-heavy, adding 1.54% Nasdaq Composite It gained 2.27%. After weeks of impasse, lawmakers have taken steps to reach a deal that would pass federal funding legislation and end the shutdown.

Cramer argued that the market suffered last week as investors worried about the ongoing government shutdown, which has disrupted air travel and weakened consumer confidence. He added that the shutdown could hurt GDP growth during holidays, which account for a large portion of the economy. But Cramer continued that at the first sign of a deal, money “flowed back into the stock market.”

Cramer also noted last week that many investors have become wary of the massive valuations of some AI stocks, including industry leaders. Nvidia And palantir. But data center-related stocks rose on Monday; Nvidia gained 5.79% and Palantir gained 8.81%. Some of these companies are profiting, Cramer suggested, because hyperscalers apparently can’t stop AI development for fear they’ll be “left in the dust by competition.”

“As crazy as the stock market seems, it’s not as crazy as you think,” he said. “Everyone short-circuiting AI games today has learned this.”