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Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 soared Wednesday afternoon, in its biggest one-session gain in five years, after President Donald Trump walked back his aggressive tariffs strategy. Taking to Truth Social, the president said he put a 90-day pause on tariffs and substantially lowered the so-called reciprocal “baseline” tariff rate to 10%, effective immediately. But not every country is getting this treatment. This does not apply to China, which saw Trump raise levies against the world’s second-largest economy to 125%, effective immediately. due to the country’s retaliation. The remarkable speed and velocity of this broad market rally show the perils of being too negative after a significant drawdown, especially when extreme oversold conditions suggest it is time to be constructive. In late afternoon trading, as of this writing, the S & P 500 was up roughly 8%, and the Nasdaq was up roughly 10%. Latest on AI: At its Cloud event, Alphabet CEO Sundar Pichai reiterated the company’s plans to invest $75 billion in capital expenditures this year, with the bulk of that spending earmarked for servers and data centers. Capex programs are always subject to change. Companies can increase their investment programs throughout the year to meet strong demand signals. Or companies can reign in their capex if they are worried about slowing growth and want to protect their free cash flow. Google’s $75 billion has no guarantees, other companies may pursue different strategies, and questions about 2026 activity levels remain. But even before the tariff-pause news, Google’s update provided relief to the AI infrastructure complex. Rebound works : Club stocks Nvidia , Broadcom , and Eaton were all outperforming the broader market’s incredible rally. In late afternoon trading, Nvidia and Broadcom were up about 14% each, and Eaton was up 10%. To be sure, these stocks were still down on a double-digit percentage basis year to date. Some of the biggest gainers in this market comeback are stocks that faced the largest drawdowns since the tariff escalation began, a point we made on Tuesday’s Homestretch . Up Next: On the earnings calendar, former Club stock Constellation Brands reports and the company best known for its Mexican beers changed its usual earnings structure. It will report its earnings after the closing bell and hold its conference call Thursday morning. We didn’t get the best price, but we sold the position in February over concerns about tariffs on goods imported from Mexico and a slowdown in its beer business. CarMax reports before the opening bell on Thursday. On data side, we’ll see the March consumer price index and weekly jobless claims. On the CPI, the market will want to see a mild report since the Federal Reserve is in the uncomfortable position of dealing with stubborn in inflation. Due to the wild moves in the bond market, we’ll be watching the $22 billion auction of 30-year Treasurys. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
