Stocks Fall and Oil Prices Extend Rally, Broadcom's AI Boost, Anthropic-Pentagon Tensions 3/5/26

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Jim Cramer (0:59)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:06)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Pre-market's a little more wary this morning after Wednesday's bounce. Oil's back to 77 as the war moves into day six, and the ECB at least begins to warn about a possible inflation spike if the conflict lasts. 10-year 414 now. That's about a three-week high. Our roadmap begins with oil back on the rise as the conflict is in day six. Futures lower, but markets did rebound across Asia.

David Faber (1:35)

Plus, we're keeping an eye on the chips. Here's a Broadcom. They are on the move, and that move is higher. This on CEO Hock Tan, saying he sees AI chip revenues significantly above $100 billion next year. And the Pentagon and Anthropic reportedly back at the negotiating table. CEO Dario Amodei saying the company is seeking to de-escalate the situation, while saying OpenAI's Pentagon messaging is, quote, straight up lies.

Carl Quintanilla (2:04)

Let's begin with the markets this morning. S&P is back in positive territory for the year after closing yesterday's session, just shy of pre-Iran war levels. Jim, interesting piece in the journal today. Unfazed retail investors keep hitting by.

Jim Cramer (2:18)

Yeah, well, I reject the idea that they keep hitting by. I say that they stay. They're not leaving. And typically, we had these periods where when things got tough, they bolted and the institutions stayed. It's the institutions that seem to bolt. And the individuals have learned, let's ride things out. David, the individual who's now in the market, there's a mixture. The younger people, they want to be in crypto. They want to be in...

David Faber (2:45)

They still do, really?

Jim Cramer (2:47)

Well, they moved to gold. A lot of them moved to gold, a lot of them moved to gold.

David Faber (2:49)

Well, maybe they're just playing the prediction markets.

Jim Cramer (2:51)

Well, that's true, too, but the older people, the baby boomers who are transferring the great wealth, $130 trillion, they're not going into cash.

David Faber (3:00)

What are you going into, their boomer?

Jim Cramer (3:03)

I don't know, all I have is cash, so I can't do anything. My kids say thank you for nothing.

Carl Quintanilla (3:08)

Well, there's not much point they believe in saving for a house, at least in the near term.

Jim Cramer (3:12)

Yes, well, look, I think that there are a lot of people who are tapping into the 401k, but the 401k is up so much. I mean, it is this great asset. We make it sound like that everybody is destitute. I look at it and say, well, people just kept their money in the 401k.

Carl Quintanilla (3:24)

Oh, you're referring to the hardship withdrawal piece yesterday.

Jim Cramer (3:26)

Yeah, look, I just think that the individual just says, you know what? People made a lot of money in stocks, and I'm not going to trade in and out. It's a sucker's game, and it is. It's a sucker's game. You know, are they going to sell on Monday and buy yesterday and then sell today? No, that's what you can't do. So, I'm proud of the individual, Vester. They seem to really step it up.

Carl Quintanilla (3:47)

Yeah, it's definitely holding on for dear life.

Jim Cramer (3:50)

Yeah, well, look, they know the Magnificent Seven, but they know the S&P 500, they know Warren Buffett. Warren Buffett has told them over again, just buy and hold. That's who they revere. I was great to hear Becky's interview this morning.