- Economic data in the coming weeks could have a big impact on banking and technology stocks, Jim Cramer said.
- After a rough day for names like Silvergate, there is still the possibility of hope on the horizon.
Foamy markets and banking turmoil cast a pall over broader markets, but investors should keep an eye on economic data and the Fed’s continued rate hikes, CNBC’s Jim Cramer said Thursday.
Sharp declines in Silvergate Bank and SVB Financial shares came as the broader banking sector underwent a major collapse, Cramer said. “Everybody. Big, little,” Cramer said. “Didn’t matter.”
Cramer pinned the collapse on a Fed win and a general flight from three different areas: commercial real estate, the venture slowdown and crypto.
A flurry of downgrades raised concerns about a few big commercial real estate names, Cramer said, including SL Green and Vornado Realty Trust.
Add to that the cold venture capital markets, and it’s no surprise, Cramer said, that SVB Financial, which completed a major capital raising this week, is taking a bit of a hit as a potentially risky bet.
Crypto’s well-documented collapse means Silvergate’s action, while overly punitive, is not surprising, Cramer said.
But there is hope on the horizon with two sets of economic data due out in the coming days: the February employment number and the non-farm payrolls report. Cooling and weaker numbers for those reports could be a boon for the economy and tech stocks, respectively, Cramer said.
“Eventually, even the bank stocks will be worth buying.”