Stocks Hit Records Amid Surging Yields, Led by AI Giants
CNBC’s Jim Cramer highlighted that stocks are reaching record levels despite rising Treasury yields. The Nasdaq Composite and S&P 500 rose on Monday as Meta, Microsoft, and Nvidia led the gains. These companies represent nearly 17% of the S&P 500 by market cap, allowing their strong performance to lift broader indices even amid higher rates. Cramer noted that rising yields typically pressure stocks but are being offset in this case due to powerful catalysts for these AI leaders—such as demand for Nvidia’s chips and enthusiasm around Microsoft's Copilot. However, he warned the bond market may be a better indicator of future stock performance if rate pressures persist. Traditional safety sectors like utilities remain underperforming. The unusual disconnect between stocks and bonds is attributed to factors including government borrowing needs, data center funding demand, or hedge fund activity in Treasurys.
Topics: AI stocks bond market Meta Microsoft Nvidia Treasury yields