The stock market situation continues to deteriorate. The S&P 500, Nasdaq and Dow fell for the fourth consecutive week as the Iran war and high wholesale inflation fueled economic concerns. Nvidia’s annual GTC developer event last week was filled with bullish announcements and Wall Street and Silicon Valley buzz. Still, that didn’t help the AI chip giant’s stock price. Micron’s earnings report and subsequent comments were the latest update on the severity of the global memory shortage, weighing on the stock. .SPX .IXIC, .DJI YTD Mountain S&P 500, Nasdaq, Dow Year-to-date Performance The S&P 500 is down 1.5% over the past five sessions. The Nasdaq and Dow each fell about 2% this week, briefly dipping into 10% correction territory before closing lows on Friday. Since the US and Israel first attacked Iran three weeks ago, stocks have largely moved in opposite directions due to rising (and occasionally falling) oil prices. According to the S&P Short Range Oscillator, the market has remained in oversold territory for nine consecutive sessions due to falling stock prices, which is why we put some money into it. Last week, the club made two acquisitions of Goldman Sachs and Boeing, and bought up stakes in Wells Fargo and Cardinal Health. All of these names have been unfairly punished in the market downturn and could rise on any positive news. Jim Cramer has said the opening of the Strait of Hormuz, a key oil shipping waterway off Iran’s coast, is key to a meaningful recovery in stocks. It’s unclear whether the market will be able to end its losing streak on Monday. In the meantime, let’s take a closer look at the three forces that moved Wall Street and our portfolios last week. Concerns about inflation As oil prices soared due to conflicts in the Middle East, investors were concerned about inflation. Wholesale prices in February were higher than expected, but that was before the Iran war began. The producer price index rose a seasonally adjusted 0.7% for the month, well above the Dow Jones forecast for a 0.3% rise. Hours later, Fed Chairman Jerome Powell said inflation was not coming down as quickly as expected. He also said that the rise in oil prices caused by the war would lead to higher oil prices in the short term. Jim last week called the combination of crude oil and PPI a “one-two punch” for the stock market. International benchmark Brent crude rose 8.8% for the week following attacks on various overseas energy facilities. As we reported on Friday, consumers are already feeling the pinch from rising gas prices at filling stations, and Costco gas stations tend to be crowded, with people trying to get inside while at a Costco gas station. Costco sells gasoline for less than retail price. More traffic to your store means more sales. Memory-starved Micron announced a blockbuster quarter on Wednesday. The memory chip maker’s sales nearly tripled, which CEO Sanjay Mehrotra blamed on “structural supply constraints” and “increased demand for memory driven by AI.” But the next day, Mehrotra said that as a result of this supply crunch, Micron would not be able to provide enough memory to its major customers. “Over the medium term, we will only be able to supply about 50% to two-thirds of demand to our major customers,” the CEO told Jim on CNBC’s “Squawk on the Street” on Thursday. The explosion of AI has created a massive memory shortage. That’s good news for storage and memory stocks like Micron, whose shares are up about 50% year-to-date after more than tripling in 2025. But for hardware companies that need memory, the situation is complicated. Look at HP’s earnings last month. The laptop maker’s stock hit a 52-week low after management forecast full-year profits at the low end of its guidance and cited pressure from rising memory prices. The stock price has fallen 18% since the beginning of the year. Apple is doing well, with its stock price down less than 9% year-to-date. The iPhone maker gained market share in China in the first nine weeks of this year, even though the region’s smartphone market lags, according to data from Counterpoint Research. Analysts said Apple’s holding the line on pricing has helped it attract more customers, while rivals have been forced to raise prices due to rising memory costs. “Perhaps this is an indication that (Apple) is better at managing memory costs than its competitors, which have to raise prices,” Jeff Marks, director of portfolio analysis at Investing Club, said Thursday morning. Nvidia’s GTC Nvidia held its highly anticipated GTC last week. It included new product announcements and insight into the direction of revenue. Highlights: CEO Jensen Huang said he expects orders for the company’s Blackwell and Vera Rubin generation chips to reach $1 trillion by 2027. This conference will be a big topic for investors, as they often look to Nvidia for the next sign of AI. The company is not only a leading AI chip maker, but also the largest publicly traded company in the United States by market capitalization. It’s a frustrating stock to own these days. Despite all the positive news, the stock is down 4% this week. Despite falling more than 7% in 2026, Jim maintained his “proprietary, no trading” stance. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
