Apple and other big tech names need to recover for the overall stock market to rebound, CNBC’s Jim Cramer said Monday.
“FAANG cannot keep rolling over,” Cramer said on “Fast Money: Halftime Report.” (FAANG, a term coined by Cramer, stands for Facebook, Apple, Amazon, Netflix, and Google-parent Alphabet.)
The tech-heavy Nasdaq led Wall Street lower, with Apple shares falling more than 4 percent after one of the iPhone-maker’s suppliers cut its outlook.
“Apple has to find its footing” in order to declare the tech correction over, said Cramer, the host of “Mad Money.”
The tech slide that began last month has been broad and persistent, with almost 73 percent of the once high-flying sector in correction levels or worse.
Case in point, shares of Amazon dipped into bear market territory Monday, a little over two months after eclipsing a market value of more than $1 trillion.
Amazon is down about 20 percent from its intraday all-time high on Sept. 4. Apple is down nearly 17 percent from its Oct. 3 intraday all-time high. Facebook is down more than 35 percent from its 52-week high.
“This is a very serious correction,” Cramer said. “We shouldn’t be having a correction right now. I mean, we’re finished with all the bad news until the G-20” summit of world leaders in Argentina later this month.
While there are a lot of good things to say about many of the tech companies, Apple is harder, Cramer said. “The bears have gotten control. And the momentum was the last nail in the coffin.”
Cramer’s charitable trust owns shares of Apple.
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