The Fed’s interest rate cut doesn’t upended broad market themes, Jim Cramer says
Jim Cramer from CNBC warned investors not to make large market moves based on the FED’s interest rate decisions, and showed that large market themes did not really change after the Central Bank’s Wednesday meeting.
“Of course, even though he could get more Dovish Relish than Powell … Big themes did not rise. After the Fed’s meeting, the irregular market action may have created opportunities for buyers.
“This is why? Because we don’t trade deductions at proportions,” Cramer continued. “We do not receive or sell shares based on Jay Powell’s statements.”
After the session of Wednesday, the FED, after the September meeting, the criterion was mixed after a 0.25% reduction. He also showed that two more sections could be before the end of the year. . Dow Jones Industrial Average Less than 0.6 % S&P 500 0.1 % off And Nasdaq composite It lost about 0.3%. While the Fed’s move is greatly expected by Wall Street, some investors may have the courage of committees by more hawk perspectives for next year, as some investors envisaged only one ratio deduction in 2026.
The FED, in a statement after the funding, said the last weakness in the labor market “business gains slowed down and unemployment rate increased, but remained low,” he said. “Inflation rose and rose slightly.”
According to Cramer, the market’s reaction to the Fed’s decision means that some investors expect a larger deduction or that they believe that their stocks are overly valued without major interruptions.
Has listed several sectors, which he thinks he can continue to perform at the moment, including technology and artificial intelligence and banking. He also said that he did not see a real reason to be excited about the interest rates, including housing stocks, to be excited about cyclicals. However, the Fed added that he would buy them if a serious pair of ratio deductions can buy them.
“The Fed was caught between a rock and a difficult place,” Cramer said. The Central Bank must fight inflation from most tariffs and a weakened labor market. Cramer, FED President Jerome Powell’s position for people in the position, he said. Powell does not want to pass themselves, because “nobody knows what the real effect of tariffs will be, but it will be negative.”
“Sorry, who wants something exciting, the audience is stable on the way to Powell,” he said. “And if you ask me, what exactly do we need?”
