Cramer points to signs the market is broadening beyond the 'Magnificent Seven'

• CNBC's Jim Cramer on Wednesday said investors have renewed interest in stocks beyond the "Magnificent Seven."
• "With interest rates peaking a month ago and a growing sense that the Federal Reserve might actually be done tightening as inflation comes down, let's face it: we've got a whole new market," he said.

CNBC's Jim Cramer on Wednesday suggested the market has renewed interest in smaller cap stocks, expanding outside the "Magnificent Seven" tech stocks that have reigned supreme over the past several months.

"With interest rates peaking a month ago and a growing sense that the Federal Reserve might actually be done tightening as inflation comes down, let's face it: we've got a whole new market," he said.

Larger companies are now looking to buy smaller ones with inexpensive shares, and activist investors are pushing enterprises to improve, Cramer said.

He pointed to Wednesday's announcement that pet-sitting company Rover secured a $2.3 billion takeover bid from asset manager Blackstone. Rover went public through a SPAC in 2021, but soon after saw its shares plummet. However, the company has since seen profits grow, and its stock was up nearly 29% by Wednesday's close. Cramer also named activist investor Elliott Management, which he said is working to revive stocks like Crown Castle and Phillips 66.

Retail stocks are also moving higher after surprising Wall Street with better-than-expected quarters, Cramer said, calling the sector his favorite "area that was left for dead." Gap stock surged after it reported earlier in November, and Foot Locker's Wednesday report helped the stock jump 16% by close.

But even though investors have renewed interest in different sectors, Cramer said that does not mean they are moving on completely from the Magnificent Seven or other tech outfits.

"Some no-name, money-losing SPAC got disciplined, started making money, and then caught a takeover bid from a high-quality buyer, ringing in a change, a monumental change to a once moribund group," he said. "When rates were higher, Rover was the detritus of a ridiculous, fatuous and fanciful era, like hundreds and hundreds of other stocks, but with rates going down, it's a takeover target. Tells you everything you need to know about this suddenly glorious stock market."

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