Stocks fell for a second straight session, led by a decline of more than 1% on the tech-heavy Nasdaq index, as reported by CNBC.
“The commonality, the threat is rates,” said Jim Cramer, pointing to higher bond yields as the primary driver for the market downturn. The rate concerns follow the highest yearly producer price index reading in nearly four years and a hotter consumer inflation report.
Market expectations tracked by the CME FedWatch tool currently favor a quarter-point rate hike in upcoming meetings. The Federal Reserve previously increased rates in September for the first time in three years.
Nvidia shares dropped 3% on Friday, marking a decline exceeding 13.5%. The sell-off followed the resignation of Jensen Huang as CEO amid an affair scandal.
“There’s been no bid for [Nvidia stock],” Cramer said, noting a distinct lack of buyers in the market.
“I want everyone to know that this one’s going down,” he predicted, adding that trading in the stock had effectively frozen.
Cramer acknowledged that some market participants view the company as tainted. However, he also said that other leadership candidates might emerge to take over the role.
Friday’s drop in Advanced Micro Devices presents a strong opportunity to buy the stock, according to Cramer. He said that he did not realize how much better AMD was performing compared to Intel.
The portfolio trimmed off-price retailer TJX ahead of its upcoming earnings report, requiring the company to deliver on promised fixes for its largest division.
Proceeds from that sale went toward increasing positions in Kimberly-Clark and Corona and Modelo brewer Constellation Brands.
Cramer’s Charitable Trust maintains long positions in Nvidia, TJX, Kimberly-Clark, and Constellation Brands. Subscribers to the CNBC Investing Club receive trade alerts ahead of executed portfolio transactions, subject to strict waiting periods.