CNBC’s Jim Cramer said Monday that Wall Street is a land divided — with three distinct markets existing under the surface that are all behaving differently. “We’ve got a speculative market, and then we’ve got a market that is keying on tech, and then we’ve got a regular market that isn’t doing anything,” Cramer said on “Squawk on the Street,” shortly before the opening bell. The major U.S. averages opened higher and are having a strong day, bouncing back from Friday’s sell-off on revived fears of a U.S.-China trade war. Monday is a particularly active day for what Cramer sees as the speculative corner of the market. For example, shares of fuel-cell provider Bloom Energy soared after the company inked an agreement with Brookfield to bring its technology to the asset manager’s data centers. “There is a sense of just incredible speculation because of a Brookfield-Bloom deal. That’s the sort of problem with this market,” Cramer said. Shares of rare earth miners also rose on Monday, with Cramer attributing some of that move to JPMorgan’s announcement of a $1.5 trillion investment initiative in domestic industries, including critical minerals. In his Sunday column for Investing Club subscribers, Cramer expressed concern that money-losing companies with red-hot stocks may start selling a lot of stock in secondary offerings — something he said is smart if you run one of the companies. But the added supply could pose risks to the broader market. The corner of the market that is “keying on tech,” as Cramer put it, encompasses the tried-and-true artificial intelligence winners. That cohort is benefiting Monday from the massive Broadcom-OpenAI partnership, the latest in a string of deals for the ChatGPT maker intended to grow its computing power footprint. Shares of Broadcom — one of the stocks in Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club — surged around 10% on the news. Club holding GE Vernova , whose supply-constrained gas turbines are crucial in producing electricity, jumped more than 4%. Meanwhile, Vertiv , a key supplier of data center equipment, climbed around 6%. And then there’s what Cramer called the “regular market,” where investors might find traditionally defensive stocks such as consumer staples. Of the 11 sectors in the S & P 500 , it’s the only one in the red on Monday, as President Donald Trump’s weekend social media post on China eased the very concerns created by Trump’s hawkish posts on Friday. Staples was the only sector that was positive in Friday’s sell-off. Overall, “I’m looking at a market that says, ‘OK. What happened Friday didn’t really happen. It’s a do-over,” Cramer said.
Cramer sees 3 distinct stock markets at work
