Why Boeing and Honeywell are rallying, plus the AI trade gets a boost

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks rose for the second day in a row, with the S&P 500 and Nasdaq setting new records. Enthusiasm for AI data center deployment continued to gain momentum as the CPU market took off, with Advanced Micro Devices and Nvidia entering into a multi-year commercial and technology partnership with Corning to expand domestic fiber and optical interconnect manufacturing. The deal gives Nvidia an option to buy 15 million Corning shares with an exercise price of $180 per share. Nvidia also has a pre-funded order to purchase up to 3 million shares at a purchase price of $500 million. Corning shares rose more than 10% on the news and excitement from investor day, rising to roughly $183, instantly cashing out a 15 million share order. The other big headline was optimism that the United States and Iran were nearing an agreement to end the war and reopen the Strait of Hormuz. Reports indicate that the two sides are nearing an agreement to end the conflict; But President Donald Trump warned that without a deal, the "bombing" would continue "at a much higher level and intensity than before." The update was enough to send WTI crude oil prices back to the mid-$90s and lower interest rates. The battered aerospace group was one of the biggest beneficiaries of the news, on the grounds that reopening the strait would ease jet fuel shortages and ease concerns about airline flight cancellations later this year. Honeywell and Boeing rallied on this issue. It's another big earnings night, with Arm Holdings, Coherent, Axon Enterprise and Dutch Bros scheduled to report. McDonald's and Datadog report ahead of Thursday's opening bell. Also on the list: Challenger layoffs, weekly unemployment claims, and NY Fed 1-Year Inflation expectations. (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.