CNBC's Jim Cramer said Wednesday that wild swings on Wall Street in October are indicative of a market trying to find a bottom, and that's why he likes beaten-up technology stocks at current levels. "I think if people stick with really good stocks they're going to be fine," Cramer said on " Squawk Box." "I like technology here." "High growth works. And when you have these dips you buy," he added, as the tech-heavy Nasdaq was under pressure once again, while the 10-year Treasury yield remained elevated on concerns about inflation. The Dow Jones Industrial Average and the S & P 500 were also lower. All three have been alternating between strong gains and sharp losses since Friday. As of the end of Tuesday's trading session, the Nasdaq was 6% away from its Sept. 7 record close. The S & P 500 was 4.2% from from its Sept. 2 record close. The Dow was nearly 4% away from its Aug. 16 record close. While the stock benchmarks were not in correction territory, as defined as losses of 10% or more from recent highs, many tech stocks, including Apple and Amazon , were already in correction. "It's not an overall dip in the market. It's that you go and buy the stocks that really make it so that they're not impacted by inflation and shortages," Cramer said. A rapid rise in market rates and inflation makes the future cash flows of high growth companies, such as tech stocks, less valuable. That, in turn, can make them appear overvalued. Higher bond yields, which can increase borrowing costs, also hinder the ability of tech firms to fund growth as well as buy back stock. Cramer said that inflation due to long-term problems with the economy is not the problem in the U.S. It's supply chain shortages, "not inflation," he said. "The shortages are everywhere," and that's driving prices higher. "People very quickly are trying to distance themselves from high growth, and it has just never worked," he added. "The companies that are in the FAANG unit are basically about trying to keep inflation down. And they don't have the raw [material] costs," said Cramer, who coined the FANG acronym, which stands for Facebook , Amazon , Netflix and Alphabet 's Google. Apple was added later. On Tuesday's "Mad Money," he said he believes the recent weakness in Microsoft shares — more than 5% lower than their all-time highs on Aug. 20 — has created a favorable situation for investors . Sign up here for the new CNBC Investing Club newsletter to follow Jim Cramer's every move in the market, delivered directly in your inbox. Disclosure: Cramer's charitable trust owns shares of Alphabet, Amazon, Apple, Facebook and Microsoft.
Jim Cramer on CNBC's Halftime Report.
Scott Mlyn | CNBC
CNBC's Jim Cramer said Wednesday that wild swings on Wall Street in October are indicative of a market trying to find a bottom, and that's why he likes beaten-up technology stocks at current levels.