NEW YORK — As investors brace for another volatile week on Wall Street, CNBC's Jim Cramer outlined his top 10 things to watch in the stock market on Monday, spotlighting escalating trade tensions and breakthroughs in the pharmaceutical sector. In his latest commentary, Cramer highlighted President Trump's decision to raise his threatened global tariff to 15 percent, a move that could ripple through international supply chains and impact major U.S. companies. This comes amid ongoing debates over trade policies, with the announcement reportedly aimed at protecting domestic industries from foreign competition.
According to Cramer's analysis on CNBC, the tariff increase represents a significant escalation from previous threats, potentially affecting imports from key trading partners like China and the European Union. 'This could be a game-changer for sectors like manufacturing and tech,' Cramer said in his segment, emphasizing the need for investors to monitor how companies such as Apple and Boeing might adjust their strategies. The White House confirmed the tariff hike late last week, with officials stating it would take effect immediately to address what they described as unfair trade practices.
Trump's tariff policy has roots in his first term, when similar measures were imposed on steel and aluminum imports, leading to retaliatory actions from other nations. Economists have warned that a 15 percent global tariff could add billions to consumer costs and slow economic growth, though supporters argue it bolsters American jobs. The Commerce Department reported that preliminary discussions with trading partners have been tense, with no immediate concessions expected.
Shifting focus to the health care arena, Cramer praised Eli Lilly's latest triumph over rival Novo Nordisk in the obesity drug market. The Indiana-based pharmaceutical giant announced positive trial results for its weight-loss medication, outperforming Novo's offerings in efficacy and side-effect profiles. 'Eli Lilly is striking gold again in the battle against obesity,' Cramer noted, pointing to the stock's potential for further gains as demand surges.
Eli Lilly's success builds on its earlier approvals for drugs like Mounjaro, which have captured a significant share of the burgeoning market for GLP-1 agonists. According to company statements, the new data showed patients losing an average of 20 percent of body weight over 72 weeks, compared to 15 percent with Novo's Wegovy. Novo Nordisk, based in Denmark, has dominated the space since semaglutide's approval in 2021, but Lilly's advancements are closing the gap.
Analysts at firms like JPMorgan have upgraded Lilly's stock rating following the news, citing a projected market size for obesity treatments exceeding $100 billion by 2030. 'This is not just a win for Lilly; it's reshaping the competitive landscape,' said one expert quoted in industry reports. Novo Nordisk, meanwhile, downplayed the results, with a spokesperson stating, 'Our products continue to lead in real-world outcomes and patient satisfaction.'
Cramer's list also touched on broader market indicators, including the performance of the S&P 500, which closed Friday down 0.5 percent amid tariff concerns. He advised watching semiconductor stocks, as tariff hikes could disrupt chip supplies from Asia. Companies like Nvidia and AMD were flagged for potential volatility, with Cramer recommending diversified portfolios to weather the storm.
In the energy sector, Cramer pointed to oil prices hovering around $80 per barrel, influenced by geopolitical tensions in the Middle East. He suggested keeping an eye on ExxonMobil and Chevron, which could benefit from sustained high prices but face risks from global slowdowns tied to trade wars. Federal Reserve Chair Jerome Powell's recent comments on interest rates added another layer, with markets pricing in a possible 25-basis-point cut later this year.
The retail sector wasn't spared, as Cramer highlighted consumer spending trends amid rising costs from tariffs. Walmart and Target shares dipped last week, with executives warning of supply chain disruptions. 'Tariffs mean higher prices at the checkout,' Cramer observed, urging investors to track earnings reports due this quarter.
Turning to technology, Cramer's commentary included optimism for cloud computing giants like Amazon and Microsoft, despite trade headwinds. He noted that domestic data center investments could shield them from import tariffs. 'Tech isn't out of the woods, but innovation drives resilience,' he said.
Financial stocks rounded out the list, with banks like JPMorgan and Goldman Sachs in focus ahead of their quarterly results. Rising interest rates have boosted net interest margins, but tariff-induced economic uncertainty poses risks. Cramer quoted a bank analyst: 'We're seeing mixed signals—strong lending but cautious borrowers.'
The broader implications of Cramer's watchlist underscore a market at a crossroads, balancing policy shifts with corporate innovation. As Monday trading begins at 9:30 a.m. ET on the New York Stock Exchange, volume is expected to be high, with the VIX fear index already climbing above 20. Investors from Appleton, Wisconsin, to global hubs are tuning in, as local firms with international ties feel the pinch.
Looking ahead, the tariff policy's full impact may unfold over months, with Congress debating countermeasures. Eli Lilly's momentum could spur further R&D in biotech, potentially benefiting smaller players in the obesity space. Cramer concluded his segment by advising caution: 'Stay nimble; the market rewards the prepared.'
For residents of Appleton and beyond, these developments signal a need for diversified investments. Local economists at Fox Valley Technical College have echoed Cramer's sentiments, hosting seminars on navigating trade volatility. As the week progresses, all eyes will be on how these top stories shape portfolios and the economy at large.