SNOW - Jim Cramer Explains Reason Behind Thursday Market Rally: 'AI Is Alive And Well' | Benzinga
On Thursday, the market experienced a significant rally, with the Nasdaq Composite reaching its first record high since 2021. Jim Cramer, the host of CNBC’s “Mad Money,” has offered his insights into the reasons behind this surge.
What Happened: Cramer attributed the market’s upward trend to the continued strength of the tech sector and new inflation data, reported CNBC on Thursday.
“What mattered was the one-two punch of an economy that’s just right—meaning still potentially ripe for rate cuts, it could happen—and the fact that AI is alive and well,” Cramer said.
He pointed to the January personal consumption expenditure price index, a key metric for the Federal Reserve when considering interest rates. The index showed that inflation had risen in line with expectations. Cramer found this encouraging, even though it did not necessarily indicate imminent rate cuts.
The Nasdaq Composite surged to its first record high since 2021, rising by 0.9% as technology and semiconductor stocks experienced gains. Similarly, the S&P 500 reached a new record, increasing by 0.52%, while the Dow Jones ...