Jim Cramer said that the technology sell-off, with a drop in Invesco QQQ Trust (NASDAQ:QQQ) and iShares Semiconductor ETF (NASDAQ:SOXX), is stemming from rising oil futures, which investors are leveraging as a rationale to sell semiconductor assets.

Market Reaction and Data Center Spending

CNBC’s host Cramer addressed the market pullback on Thursday, pinpointing the drop in technology stocks as an overreaction to external macroeconomic factors rather than internal sector weakness.

On X, Cramer stated that “oil/rates convenient excuses to say that data center spend is peaking so sell the semis.”

He further noted that the “big gain in oil and concern about higher rates and data center spend combine for a session that seems deemed to be ugly.” Cramer suggests that market participants are improperly conflating these broader macroeconomic shocks with a peak in sector-specific data center spending.

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Crude Oil Futures Surge

The macroeconomic pressures cited by Cramer are reflected in energy markets, with crude oil futures experiencing significant upward momentum. Both global benchmarks are showing elevated pricing, triggering the inflation and interest rate anxieties influencing the broader market.

Brent Oil Futures for December 2026 rose over 5% to $105.21 per barrel. Similarly, Crude Oil WTI Futures for November 2026 climbed to $92.75, a gain of 5.06%.

At the last check, Brent tracker, United States Brent Oil Fund LP (NYSE:BNO) was also 4.23% higher in premarket trading on Thursday, whereas WTI tracker United States Oil Fund, LP (NYSE:USO) rose 3.61%.

Tech and Semiconductor Pullback

The ripple effects of these macroeconomic concerns are visible in major technology and semiconductor index funds, executing the sell-off Cramer described. The Nasdaq 100 index tracker, QQQ, closed at $757.73 on Oct. 7, down 0.25%, and continued to slide in pre-market trading on Thursday, dropping 0.74% to $752.15.

The semiconductor sector faced even steeper declines, aligning directly with Cramer’s observation about investors selling chip stocks. The SOXX ETF closed down 1.12% at $582.82 and fell an additional 2.04% to $570.94 pre-market on Thursday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.