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.
Unlike companies in the retail or housing sector, large tech companies are largely divorced from the consumer and the labor market, and cater to the enterprise, he added.
Consumer-oriented companies may be the ones to own during this cutting cycle, Cramer suggested, even though tech stocks can still be winners with rates coming down.
"On days like today, we want the companies that desperately needed a rate cut, because they just got what they wished for," Cramer said.
Persons:
CNBC's Jim Cramer, Cramer, Wall
Organizations:
Fed, Big Tech, Consumer
Locations:
San Francisco