European shares eke out slight gains as war optimism cools
European stocks edged up as fading hopes for quick Iran peace offset Saudi loading news, with Italy and UK closing lower.
Cramer expects a calm week ahead, with analyst meetings and earnings from Okta, Costco, KB Home, and others in focus.
According to Jim Cramer, Wall Street is in for a fairly calm week as September nears its close, with just a handful of major corporate happenings still scheduled.
Most of the key macroeconomic data for the month has already been released, including rate hikes from the Federal Reserve, European Central Bank, and Bank of Japan. As a result, the final full week features only one analyst meeting and a brief earnings season.
US stock indexes have shown divergent performance during September. The Dow Jones Industrial Average is down approximately 3% for the month. In contrast, the S&P 500 has risen 0.46%, and the Nasdaq Composite has added 0.58%.
The Dow bore the brunt of the impact from the Fed's move, dropping 1.7% over the week.
Over the same period, the Nasdaq climbed 0.7% as investors came back to AI-related stocks. The central bank also indicated additional monetary tightening is possible.
The timing of the calendar further weighs on US equities, compounding the pressure from central bank policies. Historically, each of the three main indexes has faced difficulties during this period.
Since 1950, the Dow has recorded an average September decline of 0.8%, while the Nasdaq has fallen 0.9% since 1971—a seasonal pattern that has repeatedly dampened autumn enthusiasm over the decades.
Cramer adjusted his outlook accordingly.
“Remember, September is the cruelest month. … Here’s hoping we’ll have a relatively sedate couple of weeks,” Cramer said.
Given the sparse macroeconomic schedule, individual stocks may draw greater market focus. Cramer pointed to Okta's analyst meeting on Wednesday as the most significant corporate event of the week.
Shares of the cybersecurity firm have doubled in 2026. Chief Executive Todd McKinnon has also configured the company's technology to detect and follow AI agents.
“It got me thinking, how is it possible that we have all these real smart people at these AI companies, and they have us all worried about a practical cyber solution?..Why don’t they, like, talk to the cybersecurity guys?” Cramer stated.
Cramer also noted several quarterly earnings due this week. KB Home releases results on Tuesday; its stock is down 17.43% so far in 2026. The homebuilder's second-quarter revenue had already declined 27% year over year, maintaining attention on the housing sector.
General Mills is set to report on Wednesday, with its shares down around 20% for the year. Cramer said he wouldn't recommend the stock, pointing to rising input costs and GLP-1 weight-loss drugs. Cintas and Paychex also announce results that day.
Darden Restaurants posts earnings on Thursday, carrying a 12% gain, but Cramer favors Brinker International, the parent of Chili's, which has significantly outperformed Darden this year.
Costco wraps up the week following Thursday's close. The stock has fallen from above $1,000 in late April to roughly $894, and Cramer is monitoring for any indications that retaining younger members is becoming more difficult.
Even a subdued week brings its challenges, spanning housing, small businesses, groceries, and warehouse retail.
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