Cramer warns that growth stocks could see “more horror” after the CPI release

Cramer warns that growth stocks could see “more horror” after the CPI release

CNBC̵[ads1]7;s Jim Cramer warned on Wednesday that growth stocks could take another beating if the October consumer price index shows that inflation remains rampant.

“If we get a sizzling hot CPI reading, you’re going to see more horror on your screen, so that’s why people sold ahead,” he said.

The CPI measures the prices of a basket of goods and services. Investors will analyze the October report, due on Thursday morning, for any signs that inflation has cooled, with the view that the Federal Reserve may then ease its rapid rate hike.

Stocks fell on Wednesday, weighed down by a crypto selloff and uncertainty over which political party will gain control of Congress after the midterm elections. The market’s decline comes after three consecutive days of gains.

Cramer reiterated his advice to investors in recent weeks to steer clear of semiconductor and technology stocks, including names like Meta, Amazon, apple, Netflix and Alphabet.

“When prices go up, you immediately get this knee-jerk sell-off in virtually everything, but especially in technology,” he said, adding: “Some of these companies do a lot better than others, but they all trade the same.”

Disclaimer: Cramer’s Charitable Trust owns shares in Meta, Amazon, Apple and Alphabet.

Jim Cramer warns that growth stocks may see

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