Every weekday, CNBC Investing Club hosts a “Morning Meeting” livestream with Jim Cramer at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. 1. Stocks plunged on Thursday, reversing much of the previous session’s rally as investors fled technology stocks for more defensive sectors. The tech-heavy Nasdaq Composite fell 4.2%, entering correction territory after falling more than 10% from its record high last month. The S&P 500 fell 2.9%, while the Dow Jones Industrial Average lost 2.2%, giving back more than half of Wednesday’s gains. Jim warned Wednesday that Wall Street’s enthusiasm after the midterm elections could be short-lived. Healthcare, consumer staples and utilities held up comparatively better amid the overall market turmoil. 2. At the heart of the tech defeat were growing concerns that funding problems and increased political scrutiny could slow the massive buildout of AI data centers. Meta manager Dina Powell McCormick warned at a Wall Street Journal conference that building new data centers is becoming “more difficult.” Jim agreed that construction would likely slow down, but stressed that “it’s certainly not going away.” The pressure extended from semiconductors to cybersecurity stocks, including club holdings CrowdStrike and Palo Alto Networks. Even strong returns from AMD and Qnity offered little protection. Jim said the weakness underpins the club’s decision to exit Broadcom, Corning and Arm to reduce its AI risk. However, we maintain positions in Micron and Qnity to maintain exposure to the theme’s long-term growth potential. 3. Cardinal Health rose 5% on Thursday after reporting strong first-quarter results and raising its full-year outlook, citing strength in its pharmaceutical and specialty distribution businesses. While Jim remains bullish on the company’s strategy and CEO Jason Hollar warned that “parabolic moves should be sold, not bought.” This is why we reduced our position after Thursday’s strong rally. Kimberly-Clark also reported better results than feared and reiterated its full-year outlook despite continued selling pressure in China. Jim remains optimistic about the company’s longer-term prospects following the acquisition of Kenvue, but would like further details on the expected synergies. 4. Stocks covered in Thursday’s rapid fire at the end of the video were: Cisco, Dutch Bros., Shake Shack and Ralph Lauren. (Jim Cramer’s Charitable Trust is Long CRWD, PANW, Q, MU, CAH, KMB. See a full list of stocks here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Cramer says AI buying and selling will not disappear as Nasdaq enters a correction
