Cramer says higher rates are splitting the market in two — and AI stocks have a big advantage

CNBC's Jim Cramer said Wednesday that rising borrowing costs are dividing the stock market into two camps: companies constrained by the bond market and artificial intelligence businesses that seem largely insulated from higher rates. The " Mad Money " host said Wednesday's 10-year Treasury note auction reminded him of his hedge fund days, when investors waited for the results of government bond sales before buying stocks because a poorly received sale could send rates higher and equities lower. Wednesday's $39 billion auction drew strong demand, helping bring Treasury yields off their multidecade highs earlier in the day. Still, stocks ended the day lower after investors were spooked by the benchmark 10-year yield briefly climbing to 5.