Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Stocks rose on Monday after President Donald Trump announced he would postpone all military attacks on Iranian power plants and energy infrastructure for five days. He said the suspension of military activities was based on “very good and productive conversations” with Iran. Axios later reported that U.S. special envoys Steve Witkoff and Jared Kushner met with the speaker of Iran’s parliament, according to Israeli officials. However, the chairman later denied the negotiations through a post on social media platform X, resulting in the stock returning a significant portion of its gains. Still, President Trump’s comments that he is pursuing a deal with Iran have provided reassurance to stock, oil and bond markets, with WTI crude oil falling to about $90 and the 10-year Treasury yield falling to about 4.35%. Obviously, more information is needed on the details of these talks, but at least for now, the market is liking the first signs of this off-ramp. Here’s what we’re looking for to take the next step: What we want to see in order to give credence to this gathering is further evidence that de-escalation is underway, that oil tankers are passing through the Strait of Hormuz, and that missile launches have ceased. Without any signs of easing hostilities, Monday’s oversold rally may be nothing more than a bummer. As always, we remain flexible with evolving headlines, but given the fog of war and lack of detail surrounding the negotiations, it’s difficult to buy into the rallying around the various headlines. But if there’s a lesson to be learned from Monday’s actions, it’s that a resolution to the war could lead to a powerful rally, so we can’t be too negative. There are no major earnings reports after the market close or on Tuesday morning. The S&P Global US Manufacturing and Services PMI for March will be released before trading opens tomorrow. (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.
