CNBC's Jim Cramer reviewed Monday's market action and gave his take on why a large swath of stocks are notching losses, focusing on bruised sectors like consumer goods. He suggested that the power in tech has shielded much of the market from casualties weathered by other sectors. 'This is a market that rewards growth regardless of price,' he said.
'So, people will pay up for tech growth, which is all about real demand and pricing power, and they're avoiding companies that have lost pricing power and offer yields that are too low to compete with Treasurys.' Cramer suggested that the power in tech stocks related to artificial intelligence and accelerated computing has shielded much of the market from casualties weathered by other sectors. On Monday, the indexes largely are now fairly risky to own. The spike in long-term interest rates is one reason for these stocks' decline, he said, saying they are vulnerable when bond yields climb higher. The strength of the dollar might also contribute to the issue, he added, noting that many consumer packaged goods names do a lot of business overseas. Pricing power is also hurting these companies, Cramer continued. He also said many retailers and their suppliers feel squeezed as companies like Aside from consumer goods, Cramer pointed to notable weakness in other sectors including real estate, healthcare, housing, biotech, materials and foo
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