CNBC host Jim Cramer said lower borrowing costs were supporting the Nasdaq as it moved into positive territory Tuesday, while Treasury data showed the 10-year yield declining.
The benchmark yield fell three basis points, to 5.12% on Oct. 20 from 5.15% on Oct. 19, according to U.S. Department of the Treasury data. CNBC reported that the Nasdaq had been lower earlier in the session before turning positive, with CoreWeave among the AI-linked shares that regained ground.
CNBC said the session’s earlier weak tone appeared to spill over from a sell-off in South Korea. The outlet also noted that higher oil prices were weighing on sentiment.
Speaking on CNBC’s Investing Club, Cramer said investors were watching bond market moves closely. In his view, lower rates can help companies that need financing, whatever prompted investors to buy bonds. He called falling rates a “magic elixir” for stocks even as oil prices rose.
EconoTimes previously covered Cramer’s caution about treating one Nasdaq rebound as proof of a lasting AI-stock recovery.
