CNBC host Jim Cramer warned that conditions are worsening for stock market bulls, citing strong employment data that reduces the likelihood of Federal Reserve rate cuts. Total nonfarm payroll employment increased by 172,000 in May, while unemployment held at 4.3%, and inflation reached 4.2% — well above the Fed's 2% target. Cramer suggested a rate hike might even be needed to cool the economy, and the CME Group's FedWatch Tool shows a 60.7% probability of a rate hike in October. He also pointed to signs of fatigue in Big Tech, including Apple's stock decline after its 2026 Worldwide Developers Conference and Alphabet's $80 billion equity raise for AI data centers, which he argued could drain public markets of cash needed to push stocks higher. Cramer advised patience, saying investors will likely get a better buying opportunity than right now.
Alphabet Inc Class CAlphabet's $80 billion equity raise for AI data centers could drain public markets of cash, and is cited as a sign of fatigue in Big Tech.
Apple Inc.Strong employment data reduces likelihood of Fed rate cuts, which is negative for growth stocks like Apple.