Amid the Federal Reserve’s recent decision to cut interest rates, CNBC’s Jim Cramer has weighed in on how these changes might affect the technology sector.

What Happened: Cramer discussed the Federal Reserve’s recent interest rate cuts and their implications for the technology sector on Wednesday. He believes these cuts do not significantly benefit tech stocks.

According to CNBC on Thursday, Cramer stated, “With a double-sized rate cut that everybody already expected, you aren’t going to see a huge run in tech.”

He emphasized that the Fed’s actions are more beneficial to companies reliant on a healthy consumer base.

The Federal Reserve initiated its rate-cutting cycle by reducing rates by half a point and signaled an additional 50 basis points cut by year-end. This marks the first rate cut since the pandemic, aimed at addressing inflation and balancing economic risks.

Cramer highlighted his observations from Salesforce Inc. CRM’s annual conference in San Francisco, noting that tech companies, particularly those focused on AI, are less impacted by rate cuts. These companies cater to enterprises rather than consumers, distancing them from the labor market.

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He suggested that consumer-oriented companies might benefit more during this rate-cutting cycle. Despite potential gains for tech stocks, Cramer noted that Wall Street often shifts focus to companies that thrive with lower rates.

Cramer concluded, “On days like today, we want the companies that desperately needed a rate cut, because they just got what they wished for. But tech? It got out of the wish game a very long time ago.”

Why It Matters: The Federal Reserve’s decision to cut interest rates by 50 basis points marks a significant shift in monetary policy, breaking a streak of 12 consecutive months with rates held steady. This move aims to address inflation and balance economic risks. The rate cut has already impacted market sentiment, with the CNN Money Fear and Greed index showing improvement, moving into the “Greed” zone.

Price Action: Invesco QQQ Trust, Series 1 QQQ, which tracks tech players like Apple Inc. AAPL, Microsoft Corp. MSFT, Nvidia Corp. NVDA, Broadcom Inc. AVGO and others, was trading 1.67% higher during the pre-market at $479.33 while it closed at $471.44, as per Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari