CNBC’s Jim Cramer said Monday that Wall Street is a fragmented land, with three different markets operating beneath the surface, each operating differently. “We have a speculative market, and then we have a market that is focused on technology, and then we have a regular market that is doing nothing,” Kramer said on “Squawk on the Street” just before the opening bell. Major U.S. stock averages have had a strong day, starting higher and rebounding from Friday’s declines when concerns about the U.S.-China trade war reignited. Mondays are particularly active days for what Kramer considers the speculative corner of the market. Shares of fuel cell provider Bloom Energy, for example, soared after the company struck a deal with Brookfield to install its technology in the asset manager’s data centers. “There’s a sense that there’s an incredible amount of speculation going on because of the Brookfield-Bloom deal. That’s kind of the problem with this market,” Cramer said. Shares of rare earth miners also rose on Monday, a move that Cramer attributed in part to JPMorgan’s announcement of a $1.5 trillion investment plan in domestic industries including critical minerals. In his Sunday column for Investing Club subscribers, Kramer expressed concern that loss-making companies with money-losing stocks could start selling large amounts of stock in offerings, which he said would be a smart thing to do if you were to run any of the companies. However, additional supply could pose risks to the broader market. The “technology-focused” corner of the market, as Kramer puts it, includes proven artificial intelligence winners. This tier is benefiting from a major partnership between Broadcom and OpenAI on Monday. This is the latest in a series of deals for the ChatGPT maker to expand its computing power footprint. Broadcom stock, one of the stocks in Kramer’s Charitable Trust, a portfolio used by CNBC Investment Club, rose about 10% on the news. The club, which owns GE Vernova, whose supply-constrained gas turbines are essential for power generation, soared more than 4%. Meanwhile, Vertiv, a major supplier of data center equipment, rose about 6%. And then there’s what Kramer called the “regular market,” where investors might find traditional defensive stocks such as consumer staples. It is the only of the S&P 500’s 11 sectors in the red as of Monday, as President Donald Trump’s social media posts about China over the weekend allayed the very concerns raised by his hawkish posts on Friday. Staples was the only sector positive on Friday’s decline. Overall, “I think the market is saying, ‘Okay, what happened on Friday didn’t actually happen. Let’s start over,'” Kramer said.
