Market Rebound Hinges on Oil Prices and Fed Decision
Crypto and stock markets received a boost on Friday as oil prices retreated. This helped the Dow Jones Industrial Average gain 509 points, or 0.98%, while the S&P 500 and Nasdaq Composite rose 0.86% and 0.96%, respectively.
The market's rebound was largely attributed to positive updates from Adobe and Oracle after Thursday's bell. Jim Cramer pointed out that these reports breathed new life into beaten-down enterprise software and data center stocks, which include Dell, Vertiv, Cisco, Marvell, GE Vernova, and Hewlett Packard Enterprise.
Cramer's Charitable Trust owns shares of GE Vernova, and he sees potential in the company. However, he warned that next week's market action will largely hinge on oil prices and interest rates. The war in Iran is a major variable that could send oil prices sharply lower, easing inflation and pressure on interest rates.
However, if Iran were to attack a carrier group with drone swarms, oil prices would spike, interest rates would increase, and the stock market would suffer. Cramer will be watching how longer-term Treasury yields respond to the Federal Reserve's Open Market Committee meeting on Wednesday.