First Trust Cloud Computing ETF Rallies 2.19% After Cramer Dismisses AI Crash Thesis
First Trust Cloud Computing ETF rallied 2.19% Tuesday, trimming its six-month loss to 11.15% after an AI-driven tech selloff. Jim Cramer branded a 2028 AI crash thesis as “science fiction,” sparking a software ETF rebound even as SKYY remains down 15.47% YTD.
1. SKYY Tuesday Rally
Shares of First Trust Cloud Computing ETF jumped 2.19% on Tuesday, recovering from a sharp AI-driven selloff that knocked broader tech markets lower. This one-day gain narrowed the fund’s six-month decline to 11.15%, though SKYY remains down 15.47% YTD and 8.64% over the past year.
2. Cramer’s AI Thesis Rebuttal
On his broadcast, Jim Cramer dismissed a viral 2028 AI crash thesis as “high-stakes science fiction,” arguing that the bleak scenario exaggerated the threat to corporate earnings and tech multiples. His critique helped restore investor confidence in software-linked funds after anxiety around AI labor displacement pushed valuations lower.
3. Broader ETF Performance Trends
Cloud and software ETFs have lagged amid AI uncertainty, with SKYY down 11.15% over six months compared to asset-heavy funds outperforming by 35% since early 2025. Institutional flows are shifting toward capital-intensive “HALO” assets, potentially diverting further investment away from capital-light cloud strategies.