CNBC’s Jim Cramer on Thursday explained why he thinks high-flying tech stocks Apple, Meta and Tesla have “stalled” recently, with all three up about 10% for the year.

After the Federal Reserve made its third consecutive interest rate cut this week, large hedge funds and money managers bought stocks known to benefit from lower rates, Cramer said. He suggested they currently prefer companies like homebuilders, retailers, banks, industrials or transports instead of the tech giants.

Cramer emphasized that while the Dow Jones Industrial Average and the S&P 500 closed at record highs, the tech-heavy Nasdaq Composite finished Thursday in the red.

“Hedge funds are like pack animals,” he said. “When they move at once, like they did today, it’s very costly to try to go against them and buy a lot of tech.”

Apple is not a clear beneficiary of rate cuts, Cramer said. He added that some investors have criticized the company for its lack of spending on artificial intelligence compared to its megacap peers. Meta’s success also isn’t necessarily related to rates, he suggested. He said the stock is “listless because it’s become a one day story, the day it reports.”

While rate cuts help the automotive business, Tesla is transitioning from an auto company to a tech company, Cramer said. With its focus now on robots, self-driving and energy storage, Tesla stock doesn’t trade as if it’s part of the auto industry, he added.

“I wish that there were more to it than this. I wish I could tell you that there was something good happening with the winners or something bad happening with the losers,” he said. “Bottom line? You’re ultimately just looking at fund flows.”