Cramer Warns $28 Billion SK Hynix Listing Could Choke Bull Market
Updated
Updated · CNBC · Jul 8
Cramer Warns $28 Billion SK Hynix Listing Could Choke Bull Market
3 articles · Updated · CNBC · Jul 8
Summary
$28 billion of planned SK Hynix issuance and Rivian’s discounted stock sale led Jim Cramer to warn that fresh equity and bond supply is nearing levels that could choke the bull market.
Staggering recent fundraising — including SpaceX’s $85 billion IPO and $25 billion bond sale, plus debt from companies such as Amazon — has soaked up sidelined cash even as markets have absorbed it so far.
Rivian’s discounted deal suggests investors may be resisting lofty valuations, while the SK Hynix listing could force institutions to sell existing holdings to make room for the new shares.
Nvidia’s rebound on a report that China may allow limited H200 chip purchases showed buyers still have some cash, but Cramer said a few more weeks of heavy issuance could push the market into oversupply.