Jim Cramer says Big Tech stocks haven’t bottomed yet

CNBC’s Jim Cramer looked at the highs and lows on Monday and told investors that weakness in the tech sector isn’t enough to justify buying.

“Right now, there’s going to be a lot more Nasdaq weakness. So please be ready to buy, but not yet,” he said. “Too early in the rotation.”

While Dow Jones Industrial Average closed at a record level, the S&P 500 fell 0.32 percent, while the tech-heavy Nasdaq Composite fell 0.85 percent. Cramer suggested that some on Wall Street sold secular companies with consistent earnings to rotate into cyclical stocks that do well when interest rates fall.

Federal Reserve Chairman Jerome Powell stoked investors’ hopes that interest rate cuts were imminent, saying “the time has come for policy to adjust” at the central bank’s annual retreat last week. However, Powell did not provide details on the timing or extent of the cuts.

Cramer warned that “at this point, the best are being kicked out with the worst.” and named some tech stocks to watch that are currently low: Nvidia, Amazon, Meta, AMD and Micron. He said Nvidia needs to see a pullback if it’s going to rise this week after earnings. He praised the business acumen of Amazon and Meta, adding that there is demand for AMD and Micron products.

“I want to keep the shopping list small because I think there are going to be a lot more days like this,” Cramer said. “So far not enough money has been raised to think the technology has bottomed out. Sales do not cover purchases.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia, Meta, AMD and Amazon.