CNBC’s Jim Cramer on Wednesday discussed the repercussions of the Federal Reserve’s interest rate cuts on the technology sector, saying he thinks they 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.”
The Fed started of its cutting cycle strong, lowering rates by half a point and indicating it would cut by 50 more basis points by the end of the year. The move marks the first rate cut since the pandemic, and the Fed said in a statement that its decision came “in light of progress on inflation and the balance of risks.”
Cramer reflected on the time he’s spent in San Francisco at enterprise software outfit Salesforce‘s annual conference, saying the …