Cramer Warns AI Backlash Could Hit Stocks as 204 S&P 500 Names Sit 20% Off Highs
Updated
Updated · CNBC · Sep 29
Cramer Warns AI Backlash Could Hit Stocks as 204 S&P 500 Names Sit 20% Off Highs
3 articles · Updated · CNBC · Sep 29
Summary
Public sentiment toward AI is turning negative, Jim Cramer said, raising the risk that a key market leadership theme could weaken in an already fragile stock market.
Jobs fears, rising electricity and water costs, and safety concerns are overtaking AI's growth pitch, he said, with leaked Anthropic risk warnings and OpenAI's delayed ChatGPT 6.1 Astra reinforcing the shift.
Multiyear-high Treasury yields add to the pressure: more than half of S&P 500 companies trade below their 200-day averages, and 204 are at least 20% below 52-week highs.
Meta offers a model for repairing the narrative, Cramer said, by stressing community support around data centers and practical tools like its Muse AI agent for small businesses.
With midterm elections sharpening scrutiny, he warned AI companies must show tangible public benefits or face another headwind for both stocks and the broader U.S. economy.