Jim Cramer goes through the market “wash” as the market shakes

CNBC’s Jim Cramer tried to allay investors’ fears of a recession on Wednesday. He pointed to several sectors posting gains and said the economy needs to slow for the Federal Reserve to make long-awaited interest rate cuts.

“If you have a market that’s been led by a handful of stocks and then all of a sudden it’s led by healthcare, consumer staples and financials, utilities, are we to assume that’s somehow a bad thing? If it all went down, sure. , very bad, but not this time,” he said. “We have a lot of stocks going up here, a ton, giving us much broader leadership. Again, like the rate cut coming up – isn’t that exactly what we want?”

The market was choppy on Wednesday as Wall Street tried to bounce back from Tuesday’s sell-off and investors awaited the results of Friday’s employment report. The S&P 500 fell 0.16% while Nasdaq Composite decreased by 0.3% and Dow Jones Industrial Average gained 0.09%.

Cramer said he doesn’t deny the economy is slowing, pointing to declining shares of stores such as general dollar and The dollar tree. That widespread theme on Wall Street is helping stocks poised to do well in a slower economy post gains, such as consumer staples and utilities, he added. Investors should expect those moves if they want the Fed to act, he said, stressing that the central bank doesn’t cut rates when business is strong.

Some might argue that weakness in tech sectors also means a recession, Cramer said, with many convinced that NvidiaThe $279 billion loss in market capitalization is a “harbinger of doom.” But he disagreed, saying the loss was not significant when you consider the stock’s enormous run this year – with its market cap nearly tripling in a matter of months – and the fact that it remains up more than 100% until present.

“I’m willing to say there’s too much gloom and gloom out there,” he said. “Look, I’m not trying to sound ass — I want to make this crystal clear — but I think it’s worth taking a hard look at what’s actually going well, not just what’s not going well.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia.