Jim Cramer, host of Mad Money on CNBC, warned that investors may be overestimating the impact of the Democrats’ decisive midterm election victory on the stock rally. Shares of large technology companies rose, while semiconductor makers and data center developers declined, as investors expected stronger opposition to data center development to slow AI-related spending and ease infrastructure costs. Cramer said the Labor Department’s nonfarm payrolls report on Friday could reverse some of the gains and emphasized that the election did not alter the business cycle. He cited JPMorgan strategist Michael Cembalest, who said interest rates, commodity prices, Federal Reserve policy and corporate profits have a greater influence on markets than midterm elections. Apple, Microsoft and Amazon rallied, while Nvidia, AMD, CoreWeave, Nebius and Iren fell as investors adjusted their expectations for AI infrastructure spending.
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