CNBC’s Jim Cramer warned traders Thursday to wait for the market to stabilize before making any purchases.
“You don’t fight the Fed, and you don’t fight the tape, which is, after all, heavily influenced by the Fed. This tape says that everything is susceptible, again something that is very rare because there must be a lot of areas that have stabilized, “said the “Mad Money” presenter.
“As much as the Fed wants a slower economy and even a lower stock market, the appreciation of all stocks is creating some alternatives. But until things slow down with tape, these options will bring and bring more pain,” he added.
All three major indexes fell on Thursday, reversing features made after the Federal Reserve introduced a 75 basis point hike in rates on Wednesday. The Nasdaq and S&P 500 fell deeper into bear market territory, and the Dow Jones Industrial Common traded below 30,000 for the first time since 2021.
Cramer said there are companies whose numbers he’s not worried about, listing AMD, Broadcom, Kroger and more as companies that are getting beaten up in today’s market.
However, he warned merchants to steer clear of pandemic-era winners whose losses seem endless, listing names like DoorDash, Airbnb, Etsy and more.
“If these had been shoddy corporations with no hope of generating revenue, then these declines would make sense. …That said, these stocks are kryptonite here,” she said.
Disclosure: Cramer’s Charitable Belief owns AMD stock.