Jim Cramer Sees Potential Catalysts for Stocks After Tuesday’s Drop

Mad Money host Jim Cramer urged investors to consider potential supports after U.S. stocks fell Tuesday, as hotter inflation revived concerns about a larger Federal Reserve rate increase and AI shares faced separate pressure.

Tuesday’s consumer price index (CPI) reading topped estimates and pushed Treasury yields higher, reviving concern about a half-point rate increase at the Fed’s December meeting. Separately, Nvidia’s leadership uncertainty weighed on the AI trade.

The Nasdaq Composite fell 0.74%, while the S&P 500 lost 0.38%. The declines prevented both indexes from recording three-session winning streaks.

Markets fully priced in a quarter-point rate hike in December, with a 12% probability of a half-point increase. Dallas Fed President Lorie Logan suggested two quick quarter-point hikes may be necessary. Fed Gov. Christopher Waller had supported another quarter-point increase before the CPI release and left open the possibility of a half-point move.

Cramer said investors should weigh possible gains alongside the risks, saying they “need to think not only what can go wrong, but also about what can go right.”

He argued that an end to the Iran war could send oil prices lower, easing inflation and reducing pressure on the Fed. Oil had dipped below $90 per barrel for the first time since August amid hopes for a Middle East detente.

For Nvidia, Cramer cited the company’s earnings and a large share buyback, alongside a possible resolution to its leadership uncertainty, as factors that could help restore investor confidence. Nvidia shares fell for a second consecutive session.

Cramer has previously said he wanted to wait before putting more money back into technology stocks after rebounds failed to hold.

He also pointed to Anthropic’s planned initial public offering as a possible boost for confidence in the AI trade. The Claude developer is scheduled to price the offering Nov. 18, with trading set to begin Nov. 19. Its fully diluted valuation could exceed $1.4 trillion, compared with the $965 billion valuation announced with a funding round in May.