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. Market update: Stocks are rallying to start the week, extending last week’s gains after digesting early policy priorities of the Trump administration. Tariffs continue to be one of the big uncertainties, but the 10-year Treasury yield dipped on trade policy that appears less hawkish than expected. Concerns about day-one tariffs proved to be overblown with the administration adopting a slower rollout. The President indicated late Monday that tariffs up to 25% on Canada and Mexico could come as soon as Feb. 1. Tariffs on goods imported from China are still likely, but there has been no update yet. Broad rally : The market gains were broad based with every sector except energy in positive territory. The top-performing sectors were industrials, utilities and real estate, while consumer staples and technology lagged. Although many software and AI stocks rallied, the technology sector was weighed down by the 4% decline in Apple after two more analysts sounded the alarm about disappointing iPhone sales and an incoming bad quarter and guide. We acknowledge the stock could continue to drift lower from here before rallying again, but after taking action into strength last year we continue stay the course on this long-term position. AI stocks pop: The AI infrastructure stocks got a late day boost after it was reported that President Trump will announce billions of dollars in private sector investment to build out infrastructure. Open AI, Oracle , and Softbank (which pledged last month to invest $100 billion in the United States) are forming a joint venture to lead this initiative. We can debate whether this truly is a new figure because we know companies like OpenAI and Oracle already had ambitious investment plans. But the positive impact news of this announcement had on Nvidia’s share price was clear. Other AI infrastructure related names in the portfolio are chipmakers like Broadcom , Eaton for electrification, Dover for liquid cooling connectors, and Amazon , Microsoft , and Alphabet for cloud computing. Up next: After the closing bell Tuesday we’ll see the quarterly reports from Netflix , United Airlines , Seagate , and Capital One . Abbott Labs will report before the opening bell on Wednesday and we expect another good quarter from this diversified healthcare company. Abbott
