Cramer explains what the Fed's rate cuts mean for tech stocks

CNBC's Jim Cramer said the Federal Reserve's interest rate cuts hinder tech stocks because the companies don't necessarily stand to benefit from lower rates.

"With a double-sized rate cut that everybody already expected, you aren't gonna see a huge run in tech. It doesn't have the edge when we get the big cuts," he said."Right now, the Fed's helping companies that need a healthy consumer or else.

Consumer-oriented companies may be the ones to own during this cutting cycle, Cramer suggested, even though tech stocks can still be winners with rates coming down. According to Cramer, Wall Street abandons these secular stocks for ones that rely on lower rates, and there's only"so much cash to go around." He added that investors make a distinction between companies that do well most of the time and ones that can perform extremely well during certain points in the business cycle.

"On days like today, we want the companies that desperately needed a rate cut, because they just got what they wished for," Cramer said."But tech? It got out of the wish game a very long time ago."Sign up nowSiemens USA CEO explains how digital twins work to optimize manufacturing

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Jim Cramer Says Fed Rate Cuts Don't Help Tech StocksCNBC's Jim Cramer argues that the Federal Reserve's interest rate cuts primarily benefit companies reliant on consumer spending and don't significantly impact tech stocks. He asserts that large tech companies are focused on AI automation and enterprise solutions, making them less dependent on lower rates.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

Jim Cramer says Big Tech stocks haven't hit a bottom just yetCNBC's Jim Cramer on reviewed Monday's high and low performers and told investors weakness in the tech sector isn't enough to warrant buying just yet.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

Jim Cramer says Big Tech stocks haven't hit a bottom just yetCNBC’s Jim Cramer on reviewed Monday’s high and low performers and told investors weakness in the tech sector isn’t enough to warrant buying…
출처: NBCLA - 🏆 319. / 59 더 많은 것을 읽으십시오 »

Investors buying Big Tech stocks and Treasuries ahead of a potential Fed rate cutFrank Holland breaks down what investors are watching as the trader week begins.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »