Frothy markets and banking tumult cast a pallor over the broader markets, but investors should keep an eye on economic data and the Federal Reserve’s continued rate hikes, CNBC’s Jim Cramer said on Thursday.
Sharp declines in Silvergate Bank and SVB Financial shares came as the broader banking sector underwent a major collapse, Cramer said. “All of them. Big, small,” Cramer said. “Didn’t matter.”
Cramer pinned the collapse on a victory from the Fed and a general flight from three different spaces: commercial real estate, venture slowdown and crypto.
A flurry of downgrades prompted concern about a couple of big commercial real estate names, Cramer said, including SL Green and Vornado Realty Trust.
Add to that gumbo the chilled venture capital markets, and it’s no surprise, Cramer said, that SVB Financial, which executed a large capital raise this week, is taking a bit of a hit as a potentially risky bet.
Crypto’s well-documented collapse means that Silvergate’s action, while overly punishing, is unsurprising, Cramer said.
But there’s hope on the horizon with two sets of economic data set to come out in the coming days: the February employment numbers and the nonfarm payroll report. Cooling and weaker numbers for those reports, respectively, could be a boon for financials and for tech stocks, Cramer said.
“Eventually, even the bank stocks will be worth buying.”
