CNBC’s Jim Cramer highlighted some stocks that benefited from Wednesday’s Federal Reserve meeting, Outside of Tesla, there has been no member of the Seven Wonders who has been able to buck the downward market trends.
“It left a bunch of new winners in its path, winners who were complete losers until 2:00 PM yesterday when the Fed issued its statement,” Cramer said of the Fed’s actions during Thursday’s show. “These stocks used to be a deadbeat because they needed lower interest rates to thrive.”
Companies such as the construction equipment maker, Cramer said Larva And car maker stronghold They are in prime positions to benefit from the end of interest rate hikes The Fed hints at cutting interest rates in 2024
Wall Street has ousted Caterpillar for having excess reserves during the recent high interest economy. However, with 2024 looking like it will have lower interest rates, Cramer says those same reserves have Caterpillar ready to handle the increased construction demand that typically accompanies lower rates.
Ford stock has taken a hit due to labor costs, electric vehicle competition and higher interest rates on auto loans, but the company’s 5% dividend and easier monetary policy from the Federal Reserve make it an attractive stock.
The Fed’s soft monetary message on Wednesday means a wide range of companies could continue to run, causing a shift in where investors put their money in the stock market.
“Of course, companies won’t be affected if interest rates fall as well, but their stocks will be affected, because there are many other parts of the economy that do better with lower interest rates,” Cramer said. “The money will shift out of Magnificent Seven, as it started yesterday and did today, and go into these other stocks.”
Amazon, Microsoft, dead, Google, apple And Nvidia That was all up for days. Tesla It was the only one among the Seven Wonders and jumped almost 5%.
“In the last conference call, Elon Musk lamented that rising interest rates had caused a slowdown in car purchases,” Cramer said. “But yesterday, when Jay Powell effectively ended the historic tightening cycle, he changed everything for the stock market. Now interest rates are falling again, which is the biggest worry for Tesla, and, well, I have to tell you, it’s over.”
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