Jim Cramer names stocks to buy in the wake of the Fed’s rate cut

After the Federal Reserve cut its benchmark borrowing rate by 25 basis points, CNBC’s Jim Cramer shared a few stocks he thinks are solid buys in the current economic environment.

“The Fed is still on the side of the bulls because it is still in easing mode even though current economic data is uncertain,” he said. “This means we don’t have to fight with the Fed when buying stocks.”

The central bank cut interest rates even though members were divided on the decision; some feared the cut would trigger inflation, while others felt the cut was necessary to strengthen the employment market. Fed Chairman Jerome Powell stated that a future interest rate increase is unlikely, but maintained a cautious attitude regarding cuts in 2026.

The averages rose Wednesday as investors celebrated a third straight rate cut and bet the Fed will continue easing next year. Dow Jones Industrial Average While it gained 1.05% in value, S&P 500 added 0.67% and Nasdaq Composite It increased by 0.33%.

Cramer said low interest rates bode well for home builders and related retailers. Paid Brothers And Home Depot. He suggested transportation like a trucking company JB Hunt together FedExespecially as the holiday season continues. Cramer’s name is also Union Pacific And norfolk southHe praised the potential merger of the train companies. He said that industrialists also benefit from low interest rates and said: Caterpillar And cumin.

Cramer said that expensive stocks that are already doing well may be poised for more success, suggesting that Wall Street will continue to pay money to these companies. gave his name palantirHe noted that the company recently signed a contract with the US Navy.

“Make sure you don’t get into a downtrend when it’s time to be bullish toward the end of the year,” he said.

Sign up now For CNBC Investment Club to follow Jim Cramer’s every move in the market.

Disclaimer CNBC Investment Club owns shares of Home Depot.