Software stocks stage a comeback. Plus, why Boeing's CEO going to China matters

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. The S & P 500 is retreating from record highs Thursday, and the losses picked up steam in the afternoon after The Wall Street Journal reported Saudi Arabia and Kuwait lifted restrictions on U.S. military use of their bases and airspace. The news added to uncertainty surrounding negotiations between the U.S. and Iran over a peaceful reopening of the Strait of Hormuz. Oil was lower for most of the morning but reversed midday. U.S. oil standard West Texas Intermediate crude climbed back above $97 per barrel. Same goes with interest rates, with the yield on the benchmark 10-year Treasury note nearing 4.4%. The AI buildout trade is taking a much-needed breather after parabolic moves in many names. As the AI enablers fell, software stocks staged a comeback, especially those related to cybersecurity. CrowdStrike briefly crossed above $500 a share for the first time since December, and Palo Alto Networks traded above $190 for the first time since January. Both CrowdStrike and Palo Alto Networks are now firmly in the green year to date, breaking away from traditional enterprise software and the dreaded iShares Expanded Tech-Software Sector ETF (IGV). That basket of stocks has been a popular way for investors fearing AI disruption to bet against software stocks. …