Nasdaq Composite ended about 2.0% down on Wednesday after the U.S. Federal Reserve raised rates by another 25 basis points but signalled just one more hike ahead as Invezz reported HERE.
Cramer is positive on tech stocks
Interestingly, though, famed investor Jim Cramer sees the weakness today as an opportunity to invest in high quality tech stocks.
His view is based primarily on the recent bank failures. On Mad Money, Cramer said:
Banking crisis makes it so . . . we got a market that only wants to own stocks of fastest growing companies like Nvidia, Meta, Apple, Microsoft – the usual gang that does well without financing.
He particularly had great things to say about Nvidia Corp on Wednesday after its GTC conference at which it confirmed plans of expanding its partnership with Adobe on next-gen generative AI models.
Why did the Nasdaq close down today?
According to Cramer, the Nasdaq Composite ended down today not because of the FOMC announcement but what the Treasury Secretary said in a Senate hearing.
On Wednesday, Janet Yellen said the government will not bail out investors and depositors of the banks that have collapsed. In his recent tweet, Cramer had used even bolder words to express his positive view on the tech-heavy index that’s already up well over 10% for the year.
Short this Nasdaq and invite me to your funeral.
Earlier this week, Independent Solutions’ Paul Meeks also agreed that there were interesting stories to handpick within the tech space.
Source: https://invezz.com/news/2023/03/23/fed-raises-25-bps-jim-cramer-nasdaq/