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Jim Cramer Urges Caution as Bull Market Pillars Weaken

He warned that strong May jobs data make Fed rate cuts unlikely and that big tech capital raises plus a looming SpaceX IPO could strain market liquidity.

Overview

  • Cramer told viewers on Friday that he is moving from bullish to cautious and advised investors to wait for a better entry point rather than buy at current levels.
  • He pointed to the May jobs report showing 172,000 payroll gains and a 4.3% unemployment rate as a key reason markets now expect the Federal Reserve to hold rates, with tools like CME Group’s FedWatch pricing a near-certainty of no cut at the June meeting.
  • Cramer singled out Apple’s roughly 7% drop after its Worldwide Developers Conference as a sign that market leadership is weakening and that investor enthusiasm for tech may be ebbing.
  • He warned that Alphabet’s recent $80 billion equity raise to fund AI data centers could pull capital out of public markets if other big tech firms follow, reducing liquidity available to lift other stocks.
  • On the upcoming SpaceX IPO, Cramer said a very large opening valuation could create extreme volatility and that only long-term investors should consider buying at the debut, using limit orders to avoid chasing an initial pop.