CNBC's Cramer urges investors to stay in stocks amid inflation and Nvidia risks

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Cramer on stocks amid inflation

Highlights

Nasdaq drops 0.74% and S&P 500 loses 0.38% after hotter-than-expected CPI data increases concern over more aggressive Fed rate hikes.
Nvidia shares fall for a second day amid CEO uncertainty, but Cramer notes strong earnings, buybacks, and executive succession plans could restore confidence.
Anthropic's IPO, set for pricing on Nov. 18 and trading to start the next day, could value the AI firm above $1.4 trillion and boost sector sentiment.

Market pressures and possible turning points

As reported by CNBC, Cramer says investors are focusing too heavily on what could go wrong in the market instead of weighing what could improve sentiment in the near term.

Stocks fall on Tuesday after a hotter-than-expected consumer price index reading raises concern that the Federal Reserve could take a more aggressive path on interest rates. The Nasdaq drops 0.74% and the S&P 500 loses 0.38%, interrupting efforts by both indexes to post three-session winning streaks after Thursday's postelection selloff.

Cramer says investors need to consider positive scenarios as well as risks when market conviction remains weak. He points to the possibility that an end to the Iran war could send oil prices sharply lower, easing inflation and reducing pressure on the Fed, while oil falls below $90 a barrel for the first time since August on hopes for a Middle East detente.

Tuesday's inflation report pushes Treasury yields higher, while Dallas Fed President Lorie Logan suggests two quick quarter-point increases may be needed. Fed Governor Christopher Waller also supports another quarter-point increase and leaves open the possibility of a half-point move, while the CME FedWatch tool shows markets fully pricing in a quarter-point hike at the Fed's December meeting and a 12% probability of a half-point increase.

AI trade and sentiment outlook

Pressure on the artificial intelligence trade adds to market unease as Nvidia shares fall for a second straight day amid uncertainty surrounding Chief Executive Jensen Huang. Cramer says strong earnings, a large share buyback and a temporary leave for Huang during an independent investigation, with executive Ian Buck potentially stepping in as interim chief executive, could help restore investor confidence.

He also says a successful Anthropic initial public offering next week could lift sentiment across the AI sector. An updated filing shows the Claude developer is set to price its offering on Nov. 18, with trading due to begin the following day, and the company could be valued on a fully diluted basis at more than $1.4 trillion, up from the $965 billion valuation disclosed in a May funding round.

Cramer says those developments together could create a more supportive environment for stocks. In his view, the market does not need every risk to disappear, but only a few favorable breaks to shift momentum.

As a reminder, we recently covered the JQQQ blockchain fund launch offering digital access to the Nasdaq-100 Index amid selling pressure.

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