Cramer points to stocks receiving tailwind from Fed’s dovish meeting

CNBC’s Jim Cramer highlighted some stocks that benefited from the dovish Federal Reserve meeting on Wednesday, and outside of Tesla, none were members of the Magnificent Seven that have managed to go against the downward market trends.

“And it left a host of new winners in its path, winners that had been total losers until 2:00 p.m. yesterday when the Fed issued its statement,” Cramer said about the Fed’s actions during the Thursday show. “These stocks were formerly roadkill because they need lower rates in order to prosper.”

Cramer said companies such as construction equipment maker Caterpillar $Caterpillar (CAT.US)$ and automaker Ford $Forward Industries (FORD.US)$ are in prime positions to benefit from the end of rate hikes and the Fed’s hints of rate cuts in 2024.

Wall Street has knocked Caterpillar for having an excess of reserves during the recent high-interest economy. However, with 2024 looking like it will have lower rates, Cramer says those same reserves make Caterpillar set up to handle increased building demand that typically accompanies lower rates.

Ford’s stock has taken a beating due to labor costs, electric vehicle competition and high auto loan rates, but the company’s 5% dividend and easier monetary policy from the Fed make it an attractive stock.

The calming monetary message from the Fed on Wednesday means a broader range of businesses can go on a run, causing a shift in where investors are putting their money in the stock market.