Jim Cramer recommends stocks to buy after Fed rate cut

After the Federal Reserve lowered its benchmark borrowing rate by 25 basis points, CNBC’s Jim Cramer shared several stocks he thinks are solid buys in the current economic environment.

“Even though current economic data is uncertain, the Fed remains in easing mode, so we’re still siding with the bulls,” he said. “That means you don’t have to fight the Fed when you buy stocks.”

The central bank lowered interest rates as members were divided on the decision. Some feared rate cuts would accelerate inflation, while others believed they were necessary to strengthen the job market. Fed Chairman Jerome Powell said that future rate hikes are unlikely, but he sounded cautious about cutting rates in 2026.

The average rose on Wednesday as investors celebrated a third straight interest rate cut and bet the Fed would continue easing next year. of Dow Jones Industrial Average rose 1.05%, S&P500 Add 0.67%; Nasdaq Composite It increased by 0.33%.

Cramer said lower interest rates bode well for home builders and related retailers. toll brothers and home depot. He recommended transportation such as trucking companies. JB Hunt similarly fedexespecially since the holiday season is starting. Kramer is also listed as such. union pacific and south norfolkand praised the possibility of railroad mergers. He said the industry was also benefiting from lower interest rates, noting: caterpillar and cummins.

Cramer also suggested that high-value stocks that are already performing well may be poised for even more success, and that Wall Street will continue to pay for them. he named Palantirnoted that the company had just secured a contract with the U.S. Navy.

“I want people to be careful not to become bearish at a time when they are bullish towards the end of the year,” he said.

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Disclaimer CNBC Investing Club owns stock in Home Depot.