Cramer warns growth stocks could see ‘more horror’ after CPI release

CNBC’s Jim Cramer warned on Wednesday that growth stocks could take another hit if October’s consumer price index reading shows inflation is still rampant.

“If we get a scorching CPI reading, you’ll see more horror on your screen, which is why people sold before,” he said.

The CPI measures the prices of a basket of goods and services. Investors will scan the October report, due out Thursday morning, for any signs of slowing inflation, with the prospect that the Federal Reserve could then slow its steady pace of raising interest rates. interest.

Shares fell on Wednesday, weighed down by a crypto selloff and uncertainty over which political party will take control of Congress after the midterm elections. The market decline comes after three consecutive days of gains.

Cramer has echoed his advice to investors in recent weeks to steer clear of semiconductor and tech stocks, including names like Meta, Amazon, Apple, netflix and Alphabet.

“When rates go up, you immediately get that impulse sell in pretty much everything, but especially in technology,” he said, adding, “Some of these companies are doing much better than others, but they’re all trading the same thing.”

Disclaimer: Cramer’s Charitable Trust owns shares of Meta, Amazon, Apple and Alphabet.

Jim Cramer warns growth stocks could see

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