The market is worried that oil’s continued rise may cause a recession, Cramer says

The market is worried that oil’s continued rise may cause a recession, Cramer says


CNBC’s Jim Cramer broke down why oil’s skyrocketing price has Wall Street worried about a recession, pointing to the fall in oil stocks on Wednesday even as crude hit record levels.

“As long as oil prices keep climbing, it’s hard to make the case for a soft landing. Oil’s a nightmare for the Fed. It reverberates throughout the whole economy, and there seems to be no stopping it,” the “Mad Money” host said. “Every time crude goes up, so do the odds of a recession,” he added.

Oil prices reached a 13-week high on Wednesday. While energy names in the S&P 500 recorded a slight gain, only a handful of the stocks were positive.

“I don’t believe in the stagflation thesis,” Cramer said, referring to when the economy undergoes a slowdown while inflation and unemployment run high. “Ideally, we can wangle our way out of energy inflation with more supply” from American producers.

Cramer said that if prices continue to climb, that could lead to demand destruction, which in turn could lead to a recession as consumers pull back on spending overall — which means trouble for the economy and policymakers.

“Even if we don’t get a lot more supply, the price of oil will eventually come down simply from demand destruction. But if it’s done that way, we could be in for a miserable, long, hot summer,” he added.



Source

United Airlines reaches ‘industry-leading’ labor deal with flight attendants, union says
Business

United Airlines reaches ‘industry-leading’ labor deal with flight attendants, union says

United Airline flight attendants picketed outside Terminal B at Logan Airport Thursday morning seeking a new contract. John Tlumacki | Boston Globe | Getty Images United Airlines reached an “industry-leading” tentative labor deal for its 28,000 flight attendants, their union said Friday. The deal includes “40% of total economic improvements” in the first year and […]

Read More
Personal finance app Monarch raises  million despite ‘nuclear winter’ for fintech startups
Business

Personal finance app Monarch raises $75 million despite ‘nuclear winter’ for fintech startups

Monarch co-founders (left to right) Ozzie Osman, Jon Sutherland, Val Agostino. Courtesy: Monarch The personal finance startup Monarch has raised $75 million to accelerate subscriber growth that took off last year when budgeting tool Mint was shut down, CNBC has learned. The fundraising is among the largest for an American consumer fintech startup this year […]

Read More
Insurers brace for impact as NOAA predicts above-average hurricane season
Business

Insurers brace for impact as NOAA predicts above-average hurricane season

John Cangialosi, Senior Hurricane Specialist at the National Hurricane Center, inspects a satellite image of Hurricane Beryl, the first hurricane of the 2024 season, at the National Hurricane Center on July 1, 2024 in Miami, Florida. Joe Raedle | Getty Images News | Getty Images Government scientists on Thursday released a forecast for the 2025 […]

Read More