Jim Cramer, host of CNBC’s « Mad Money » program, said Wednesday that rising borrowing costs are dividing the stock market into two camps: companies constrained by the bond market and artificial intelligence businesses largely insulated from higher rates. The 10-year Treasury yield briefly climbed to 5.365%, its highest level since April 2002. SpaceX is seeking to borrow $40 billion to purchase Nvidia chips and build data centers, and Cramer expects favorable terms despite the company’s BBB credit rating. Skydance, which issued a similar amount of debt as part of its acquisition of Warner Bros. Discovery, saw its bonds fall, illustrating traditional sectors’ vulnerability to expensive credit.
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