'Jim Cramer explains how to trade Thursday’s tech sell-off

Jim Cramer advised investors to take advantage of the tech rotation but warned it might not last long. “Enjoy the rotation. Tomorrow you’ll get another chance to make money with today’s winners,” he said, cautioning not to overstay if interest rates stop dropping.

Big Tech stocks like Nvidia and Meta saw a sell-off due to a low consumer price index reading, fueling hopes for Federal Reserve rate cuts. Housing and industrial stocks like Home Depot and Caterpillar gained from the prospect of lower rates.

Cramer noted these rotations typically last about three days and require bond yields to continue dropping to sustain the rally. “Big Tech buyers will be back soon,” but he suggested waiting a few days before buying megacaps to allow time for recovery. “Their stocks are likely to drift lower. Wait a few more days and see how they react if the banks report good numbers tomorrow,” he advised.