CNBC’s Jim Cramer on Monday hailed the drop in oil prices that sent stocks higher, but said the real action for investors will unfold at Nvidia’s GTC artificial intelligence showcase this week.
Nvidia Kramer said on “Mad Money” that stocks participated in a broader stock market rally spurred by President Donald Trump’s decision to “allow Iranian oil to pass through the Strait of Hormuz.” “That caused oil prices to drop to the mid-$90s, but that’s all that matters to the (stock) average,” he added. The move allayed fears that an escalating war with Iran could disrupt global oil supplies and push prices higher. Just days ago, Wall Street was bracing for an even worse scenario.
west texas intermediate Crude oil, the U.S. oil standard, fell 5.3% on Monday to settle at just under $94 per barrel. S&P500 Jump 1%. of Nasdaq While it soared 1.2% during the session. Dow Jones Industrial Average It increased by 0.8%. The S&P 500 closed sharply lower on Friday, snapping a three-week losing streak for the first time in nearly a year.
“We left here on Friday thinking the next destination for oil was going to be $150,” he said, worrying about what such a move would mean for gas prices, voting booths and stocks. Many research notes have warned that if oil prices continue to rise, the S&P 500 index could fall by as much as 15% to 20%. WTI briefly topped $100 a barrel on Monday, but ultimately gave up its gains and ended the day lower.
This fall in oil prices has led to stock buying, especially in AI stocks like Nvidia. Nvidia CEO Jensen Huang opened the company’s GTC developer conference on Monday with an enthusiastic keynote address.
“(Investors) bought the hardware. They bought the software. They bought the infrastructure. They bought the data centers. They bought everything that creates AI. … They bought the whole wide world of Jensen fans and everything in it,” said Kramer, who is in California for this week’s GTC celebration.
Kramer said Jensen told “a story of never-ending demand” on stage in front of a packed audience. Nvidia’s CEO expects orders for chip platform Blackwell and its successor Vera Rubin to be worth $1 trillion by 2027, up from an estimated $500 billion last year. “This is the future,” Kramer added. “There are so many things going wrong in the world that you just don’t see it.”
However, many believed this as Nvidia stock rose 1.65% to close at $183 per share on Monday after consecutive losses on Thursday and Friday. Mr. Kramer is scheduled to interview Mr. Jensen on Tuesday’s “Mad Money.”
