Stocks hit fresh highs this week even as Treasury yields surged to multiyear highs, and CNBC's Jim Cramer says the reason is a handful of artificial intelligence giants. The Nasdaq Composite rose about 1% to a record close Monday, while the S&P 500 gained 0.66%, finishing just 0.3% below its prior record. Those gains came as the 10-year Treasury yield climbed above 5.34% and the 30-year approached 5.7%, with oil also falling.
Cramer argued that the AI leaders are masking what would otherwise be significant pressure from the bond market. The result is an unusual disconnect: rising yields typically weigh on stock valuations, yet major indexes are holding near or at records. According to Cramer, the concentration of strength in a few AI names is enough to offset the broader drag from higher borrowing costs.
The source for this article is a single CNBC report, so no independent confirmation or contrasting view is available. The piece reflects Cramer's interpretation of the market move rather than a consensus analysis.