Jim Cramer Has A Market Strategy: Interest Rates Up, Buy Mag 7; Rates Down, Buy Everything

Benzinga Neuro

July 01, 2024

Jim Cramer, the host of CNBC’s “Mad Money,” has advised investors to consider buying the ‘Mag 7’ stocks when interest rates rise and to buy everything when rates fall.

What Happened: Cramer emphasized that the market shows resilience when oversold. He wrote on X, “As @jeffmarkscnbc and i were just saying, we are back to a rates up buy Mag 7, rates down buy everything world. When we get oversold the market will be more sparing.”

Cramer’s discussion with CNBC’s Jeff Mark highlights their approach to navigating market fluctuations based on interest rate movements. The “Mag 7” refers to a group of high-performing tech stocks.

As @jeffmarkscnbc and i were just saying, we are back to a rates up buy Mag 7, rates down buy everything world. When we get oversold the market will be more sparing
— Jim Cramer (@jimcramer) July 1, 2024

See Also: GameStop Shares Take A Hit After ‘Roaring Kitty’ Discloses 6.6% Stake In Chewy And Faces A Manipulation Lawsuit

The Magnificent Seven stocks are a group of mega-cap tech stocks, which include Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA), Tesla Inc. (NASDAQ:TSLA), Microsoft Corp. (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).

Why It Matters: The tech sector, a major driver of the stock market's recent gains, has been downgraded by Truist's Chief Strategist and CIO, Keith Lerner. This move comes amid overvaluation concerns and a subsequent recommendation to invest in alternative sectors. Lerner recently downgraded the tech sector from overweight to neutral, citing concerns over its current valuation.

In January, Cramer suggested removing Tesla from the “Magnificent Seven” and coined a new name for the group of mega-cap tech stocks.

Wedbush analyst Dan Ives recently predicted a 15% surge in tech stocks in the second half of 2024, driven by expanding AI use cases. Ives believes the tech bull market has longevity, suggesting that the current AI boom is far from over.

Moreover, the era of the Magnificent Seven in the stock market, a term coined for a group of mega-cap giants, might be coming to an end, according to Mike O'Rourke, the chief market strategist at Jones Trading who popularized the label.

Read Next: The Rise And Fall Of Pioneering Weed Markets: RIP California And Colorado Cannabis Industries

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Recommended

The Presidential Candidate You Should Really Be Worried About - Ad

Nagging Feeling That Something Is Off in America? - Ad

Former CIA Insider: Biden Wants Backroom Deal For Pardon? - Ad

Stormy Daniels receives over $900,000 in support amid threats and legal battles, following her pivotal testimony in Trump's criminal trial.

U.S. Jobs Surge In June, Can Cannabis Keep Up? Salaries Might Tempt You To Switch Careers

The U.S. economy showcased robust job growth in June with 266,000 new jobs added, exceeding forecasts. Despite this positive indicator, the unemployment rate edged up slightly to 3.7%.

New "Living Missile" to Replace Nuclear Missiles

New "Living Missile" to Replace Nuclear Missiles - Ad

CBS News Reports: "It's an entirely new type of weapon." The New York Times Reports: "No existing defense can stop it." And one small company is building them for the Pentagon!

Cathie Wood-Led Ark Invest Dumps $4.3M Worth Of Nvidia Shares Amid Rebound -- Swoops Into Buy Stock Of This Netflix Rival

On Tuesday, June 25, 2024, Cathie Wood-led Ark Invest made significant trades in NVIDIA Corp (NASDAQ:NVDA) and Roku Inc (NASDAQ:ROKU), amidst considerable market volatility.

These Are The Top Democratic Contenders Who Could Succeed Biden If President Were To Bow Out Of

In the wake of a debate performance that drew widespread criticism, speculation has been reignited about whether President Joe Biden should bow out before the November election.

Nvidia Is Now Part of $3 Trillion Market Cap Club

Nvidia Is Now Part of $3 Trillion Market Cap Club - Ad

Nvidia has become the third company ever to have a market cap greater than $3 trillion. And now, Nvidia is pivoting to the next AI frontier it plans to conquer. This recent move is valued at $1 trillion... at least. A small handful of Nvidia's other partners could see their own stocks benefit from it.

Why Sharps Technology Shares Are Trading Higher By Around 32%; Here Are 20 Stocks Moving Premarket

Shares of Sharps Technology, Inc. (NASDAQ:STSS) rose sharply in today's pre-market trading after the company announced it received two purchase orders for a total of approximately one million SecureGard syringes for 2024 delivery.

XPeng's Flying Car Takes Off In China, Aims For Commercialization By End Of The Year

China's XPeng Inc. successfully showed off its flying car, the X2, at a trade fair, signaling a push towards commercialization in the low-altitude economy.

"If I Had To Pour Every Single Penny of My Retirement Into Just ONE STOCK..."

"If I Had To Pour Every Single Penny of My Retirement Into Just ONE STOCK..." - Ad

The former Goldman Sachs VP -- who called everything from Microsoft's 1,100% surge... to the death of the 60/40 portfolio -- is now stepping forward with his most explicit message yet: "Make this ONE STOCK the cornerstone of your portfolio."

Elon Musk Pegs Fifth Starship Launch For First Week Of August: SpaceX Expected To Attempt A Booster Landing This Time

For the next test, SpaceX is expected to attempt landing Starship's booster back at Starbase instead of splashing it down in the Gulf of Mexico like last time.

Lindsey Vonn goes sailing with Team USA and joins grinder Anna Weis on the winches

Lindsey Vonn went sailing on the Hudson River on Friday aboard a foiling catamaran, enjoying one of the perks of joining the board of directors of the United States SailGP team.

Former CIA Insider: Rare Chaos Rally Is Coming [Potential Huge Gains]?

Former CIA Insider: Rare Chaos Rally Is Coming [Potential Huge Gains]? - Ad

A former CIA insider is now predicting... This summer, a rare financial event could happen in America, a phenomenon called a "Chaos Rally." It last happened in 1968, 1992, and most recently in 2014. Good Americans who know exactly what to do... Could get in on it for huge financial gains. The coming "Chaos Rally" could be connected to Biden dropping out of the presidential race.

Michael Dell Says Generative AI Tech Wave Sweeping In Much Faster Than Early Internet: 'It's Happening Maybe 10 Times Faster'

Michael Dell, CEO of Dell Inc., compared the rise of generative AI to major technological advancements like the internet, noting its rapid adoption and significant impact on the global market.

Microsoft, Amazon Or Palantir: Reddit Users Debate How To Invest $4,900

Reddit users debate best stock picks for $4.9K investment. Microsoft and Amazon seen as strong choices, while Palantir's potential sparks debate.

Amazon's Betting Big on This Unknown AI Company

Amazon's Betting Big on This Unknown AI Company - Ad

Amazon has just made a stunning $144 million investment in one small AI company. Why? Because this under-the-radar firm holds the key to unleashing the full potential of next-gen AI... Its technology is crucial for the most advanced AI chips, including Nvidia's latest breakthrough.

Average long-term US mortgage rate falls again, easing to lowest level since early April

LOS ANGELES (AP) — Home loan borrowing costs eased again this week as the average rate on a 30-year mortgage declined to its lowest level since early April.

Norway starts stockpiling grain, citing the pandemic, war and climate change

COPENHAGEN, Denmark (AP) — The Norwegian government on Tuesday signed a deal to start stockpiling grain, saying the COVID-19 pandemic, a war in Europe and climate change have made it necessary.

The Mysterious Tale of "America's No. 1 Retirement Stock"

The Mysterious Tale of "America's No. 1 Retirement Stock" - Ad

This factory of 53,000 employees, in Burbank, CA, was camouflaged to look like a sleepy suburb (with the help of artists, set designers, and painters from nearby Hollywood movie studios). The mysterious company behind this disappearing act is now being called "America's No. 1 Retirement Stock".

Ralph Lauren goes with basic blue jeans for Team USA's opening Olympic ceremony uniforms

NEW YORK (AP) — When walks with the world’s athletes at the they’ll be doing so in snappy tailored navy blazers from Ralph Lauren — and blue jeans.

Amazon Labor Union workers vote overwhelmingly in favor of affiliation with Teamsters

Workers who are part of the are aligning themselves with the Teamsters, overwhelmingly voting in favor of an affiliation.

The No. 1 Crypto of 2024 (Trading for Less Than 10 Cents)

The No. 1 Crypto of 2024 (Trading for Less Than 10 Cents) - Ad

25X Predicted For THIS Crypto -- Starting on June 24th, this tiny 3-cent crypto just partnered with one of the biggest companies in the world... Amazon. And one team of crypto experts has identified it as the most promising crypto of 2024. You can see all of the details surrounding the No. 1 Crypto of 2024 here.

What's Going On With Nvidia Stock Thursday?

Nvidia became the world's most valuable listed company due to high AI chip demand. It surpassed Microsoft and Apple for first time since Feb 2019.

Powerball Winnings Gone: What Happens To Unclaimed Lottery Tickets

Powerball winners often take home tens to hundreds of millions of dollars. Tickets that are lost or not claimed in time end in a different result.

America Has New Type of Money, Making Some Rich...Should You Get It?

America Has New Type of Money, Making Some Rich...Should You Get It? - Ad

One of America's most controversial CEOs says, "A new form of money in America is making some people (including Elon Musk, Jeff Bezos, and 17 of America's 25 wealthiest individuals), rich. It has nothing to do with gold, bitcoin, or anything like that, but it's 100% legal. The problem? Few Americans have a real understanding of how it works.

'Rich Dad Poor Dad' Author Robert Kiyosaki Agrees With Raoul Pal's Bitcoin 'Banana Zone' Theory: 'He Knows What He's Talking About'

World-renowned author and financial educator, Robert Kiyosaki, recently expressed his support for macro guru Raoul Pal’s much-discussed “Banana Zone” theory, predicting a significant surge in Bitcoin’s (CRYPTO: BTC) value.

Stocks Show Modest Gains Ahead Of Fed's Inflation Report; Chipmakers Struggle, While Gold And Bitcoin Rebound: What's Driving Markets Thursday?

Wall Street experienced a subdued trading day on Thursday, as traders likely chose to remain on the sidelines in anticipation of Friday’s release of the Federal Reserve’s preferred inflation gauge.

From Nvidia to Meta: The Next Big AI Stock to Watch

From Nvidia to Meta: The Next Big AI Stock to Watch - Ad

One company is quietly fueling the data centers that drive AI. But here's the kicker, this energy titan offers an 8.2% yield and plans to raise it 3-5% annually. Wall Street says it's extremely undervalued - a downright steal compared to peers.

Coup-hit Niger was betting on a China-backed oil pipeline as a lifeline. Then the troubles began

ABUJA, Nigeria (AP) — A China-backed pipeline that would make an oil-exporting country is being threatened by an internal security crisis and a diplomatic dispute with neighoring Benin, both as a result of that toppled the West African nation’s democratic government.

Instacart Inks Nationwide Pact With Sally Beauty - What's Going On?

Maplebear (Instacart) partners with Sally Beauty for nationwide same-day delivery, enhancing access to beauty products amid contrasting stock performances.

Big Tech Is Spending Billions Each Month on This AI Superproject

Big Tech Is Spending Billions Each Month on This AI Superproject - Ad

Big Tech is committing billions each month to the construction of these AI mega data centers. This is where Nvidia, comes in. It's quietly leaning on a set of what we call Silent Partners to get the job done. These companies could benefit greatly from this next wave of the AI boom.

Undersea explorers mark a tragic day. Things to know about the Titan disaster anniversary

PORTLAND, Maine (AP) — A year after an experimental submersible imploded en route to the Titanic, unanswered questions linger — with no immediate answers.

Bitcoin Rebounds From ETF Outflows, Back Above $61K

Bitcoin (CRYPTO: BTC) has bounced from its poor showing in Monday trading and is trading back above $61,000, despite significant net outflows from spot ETFs.

Seven Unknown AI Stocks That Could Dominate the Next Six Years

Seven Unknown AI Stocks That Could Dominate the Next Six Years - Ad

The original "Magnificent Seven" stocks generated 16,800% over the last 20 years. But now a new set of AI stocks is set to take over. Alex Green dubs them "The Next Magnificent Seven." And he's arguing that just $1,000 in each could turn into more than $1 million in less than six years.

Google to invest another $2.3 billion into Ohio data centers

COLUMBUS, Ohio (AP) — Google will invest an additional $2.3 billion to support three data center campuses in central Ohio, the company announced Tuesday.

A Mexico City neighborhood keeps the iconic Volkswagen Beetle alive

MEXICO CITY (AP) — Janette Navarro’s 1996 Volkswagen Beetle roars as it barrels up a steep hill overlooking concrete houses stacked like boxes on the outskirts of Mexico City.

Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem

Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem - Ad

Nvidia is the hottest company in the world thanks to its chip business. But here's the thing: Nvidia is making a massive $1 trillion pivot ... To solve AI's biggest problem. But it's not making this move by itself. A new set of companies are partnering with Nvidia in this trillion-dollar venture.

Democrats put a spotlight on more than 1 million pensions saved under a 2021 law

WASHINGTON (AP) — As nears, Democrats are keen to remind union voters in Pennsylvania that pensions for many workers have been preserved as part of a coronavirus pandemic-era aid package that keeps on giving.

Nvidia Insiders Cash In Over $700M This Year As Jensen Huang $3.2 Trillion Chip Empire Continues To Swell (UPDATED)

Despite the numerous insider sellers, buyers have been scarce.

The 7th Trillion Dollar Company?

The 7th Trillion Dollar Company? - Ad

There are six American companies worth over $1 trillion. Could there be a seventh soon? This company signed a massive deal with Apple until 2040 and is also involved with Nvidia, Google, and Samsung. Could this be the next trillion-dollar company? A top stock expertpicker thinks so.

Trump Vs. Biden: Rasmussen Poll Now Shows One Candidate Has Huge Lead Over Other With Just 4 Months Before Election

Former President Donald Trump has taken a 10-point lead over President Joe Biden in the race for the White House.

Trending Now