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Jim Cramer said a sharp overnight decline in Brent crude, which fell 7.63% to $104.77 a barrel, pushed the 10-year Treasury yield to its lowest since Sept. 10 and lifted stocks across healthcare, financials, retail and travel. He cited Amazon, Waste Management, Medtronic, GE HealthCare and Intuitive Surgical as names that gained as investors revisited earnings reports previously overshadowed by higher rates.
Jim Cramer explained that increasing borrowing costs are creating a divide in the stock market, with traditional sectors facing constraints while AI-related companies remain largely unaffected. The recent Treasury bond auction, which saw strong demand and a brief yield spike, underscored the importance of borrowing costs for equities. AI firms like data centers, semiconductors, and cybersecurity companies continue to access financing easily, contributing to their market outperformance.
The Nasdaq and S&P 500 reached new highs on Monday, with the Nasdaq closing at a record, despite Treasury yields climbing to multiyear peaks. Key companies like Nvidia, Microsoft, and Meta led the rally, supported by strong earnings and growth catalysts specific to each firm. This divergence suggests that investor enthusiasm for these tech giants is overshadowing broader bond market pressures.
Micron reported quarterly results that Jim Cramer called a 'great quarter,' but the stock dropped anyway amid concerns over its gross margin outlook and increased capital spending plans. Cramer noted Micron now has 26 strategic customer agreements, up from 16 last quarter, giving it better visibility into future demand, and he remains positive on the company's long-term outlook despite near-term stock weakness.
CNBC's Jim Cramer said on 'Mad Money' that public sentiment has shifted against AI companies and their products, arguing that industry proponents have been slow to respond. He cited rising concerns over electricity costs, water use and job displacement, alongside a leaked Anthropic IPO document warning of 'catastrophic or existential risk' and OpenAI's delay of its next model over safety concerns.
President Trump said Mesabi Metallics will invest $15 billion to build what the White House describes as the largest steel plant of its kind in U.S. history, located in Iowa. A White House official told CNBC that production is expected to begin in 2030, with an initial phase producing about 7.5 million tons annually and supporting up to 6,000 construction jobs. Mesabi, based in Minnesota, said the plant would produce entirely American-made steel.
U.S. stocks posted a volatile week as Treasury yields hit multidecade highs, with the 10-year topping 5.2% and the 30-year touching 5.5%. Despite rising rate-hike expectations after strong manufacturing data and comments from Fed Governor Michael Barr, the Nasdaq gained 2%, the S&P 500 rose 1%, and the Dow added 0.3%, lifted by strength in Meta and Microsoft shares.
Chinese President Xi Jinping landed at Joint Base Andrews and was greeted by President Trump ahead of a summit covering trade, AI and the Iran war, followed by a state dinner. Treasury Secretary Scott Bessent said the U.S. and China agreed to extend their trade truce to January 10, while a Chinese Commerce Ministry spokesperson said the two sides discussed lowering tariffs. Separately, Treasury yields hit multiyear highs and U.S. stock futures fell after a down session on Wall Street.
Bitcoin has surged to price levels not seen since January, extending a recent recovery across cryptocurrency markets after a difficult 2026. The rally follows months of subdued prices and comes alongside broader moves in interest rates and Treasury yields.
President Trump used social media posts to reject growing concerns about AI expansion and data centers, dismissing them as a 'hoax' and 'scam' while crediting AI investment for America's tech lead. Separately, Microsoft released a draft code of conduct that would impose limits on future AI models, following calls from Anthropic and OpenAI for a slower pace of AI development. Meanwhile, Bank of America CEO Brian Moynihan warned that investment banking fees could drop more than 10% in the third quarter after a strong prior quarter.
CNBC's Investing Club reported that its portfolio stocks diverged sharply from a broader market pullback driven by rising oil prices and a 10-year Treasury yield near 4.9%. Salesforce surged 21.3% on strong earnings and an AI-optimistic outlook, while Meta Platforms gained 9.9%, even as the Dow, S&P 500 and Nasdaq all declined over the past month.
A closely watched investment portfolio cut positions in AI-linked names Palo Alto Networks and Corning last week after big run-ups, locking in gains of roughly 148% and 52% respectively. Proceeds were redirected into more defensive holdings such as BNY and Kimberly-Clark, as rising oil prices and Treasury yields pressured risk appetite even after Nvidia's strong earnings failed to lift the broader AI trade.