Stocks recouped some losses Thursday and Treasury bond yields tumbled to five-month lows as investors feared the the spread of new coronavirus infections could stall global growth.
Stocks set records on Wednesday but fell on Thursday amid worries about the economic recovery.
The Federal Reserve's stimulus plans were weighing on markets as minutes from the Fed's meeting in June showed the central bank discussed the appropriate time to begin pulling back on its support for the recovering U.S. economy.
How to Play Thursday's Market Selloff
While stocks were off their lows, TheStreet's Jim Cramer had some advice for new investors trying to navigate a selloff like the one in Thursday's session.
"There is a powerful force of interest rates being very low. So suddenly there is a whole new group of stocks they can look at. The 3% yielders and the consumer package stocks are doing well," Cramer said from the floor of the stock exchange.
Cramer said that PepsiCo (PEP) - Get PepsiCo, Inc. Report is the type of stock that newer investors should look at because it has a high yield and a strong leadership team. He also name-checked Clorox (CLRX) as being a good potential buy.
Newegg Is a BGL Stock, Not a Meme Stock
Newegg (NEGG) - Get NEWEGG COMMERCE, INC. Report shares dropped again Thursday amid a broader market selloff that rattled markets. Many place the stock, which has jumped by a factor of six in the past six days, in the same category as meme stocks like AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and GameStop (GME) - Get GameStop Corp. Class A Report.
"There are stocks where first they're bagged, meaning you get in as much as you can. Then you gun them, meaning you say good things are going to happen. Then into the frenzy you liquidate your position," which is what happened to Newegg yesterday, Cramer said.