Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks are largely higher , with the Nasdaq up roughly 1% and the S & P 500 up about half that. Both indexes are coming off three-session losing streaks due to selling in AI-related names. However, investors on Tuesday are turning back to semiconductors and power, electrical equipment, and liquid cooling providers like Eaton , which posted strong quarterly results and raised its full-year outlook. The rotation back into chip stocks comes after Apple shares fell about 2% after providing a disappointing gross margin outlook due to the rising cost of memory chips, which are made by Micron . Apple shares closed at a record high last Thursday. They have recently outperformed hyperscalers Amazon , Meta Platforms , Microsoft , and Alphabet — so it may not be a complete surprise to see those names rebound as shares of the iPhone maker decline. It is worth noting that Apple stock has…
Election Day: Here is the No. 1 issue we're watching as a signal for stocks
In short
Major equity benchmarks snapped multi-day losing streaks on Tuesday, driven by strong quarterly results from electrical infrastructure firms like Eaton and renewed buying in hyperscalers. Treasury yields climbed alongside the stock rebound, buoyed by solid JOLTS and durable goods figures ahead of the monthly payrolls report. Meanwhile, Apple defied the broader rally, shedding around 2% following a weak gross margin forecast tied to elevated memory component expenses. Investors are balancing these developments against ongoing Middle East tensions and upcoming earnings releases.
Key points
- A post-election reduction in anti-data center rhetoric could provide a clearing catalyst…: A post-election reduction in anti-data center rhetoric could provide a clearing catalyst for future artificial intelligence investments.
- Rising bond yields reversed recent trading dynamics where fixed income gained during down…: Rising bond yields reversed recent trading dynamics where fixed income gained during downturns in the technology sector.
- Questions regarding how future AI infrastructure buildouts will be funded continue to cau…: Questions regarding how future AI infrastructure buildouts will be funded continue to cause lingering uncertainty among market participants.