Jim Cramer warns of disconnect between stock prices and reality

Jim Cramer has noted an “incredibly jarring gulf between stock prices and reality,” highlighting a disconnect between strong underlying business fundamentals and broader market selloffs. Major indices declined on Thursday, with the Dow Jones Industrial Average falling 1.32%, the S&P 500 losing 0.87%, and the Nasdaq Composite dropping 1%.

Market volatility was driven by rising Treasury yields—with the 30-year yield reaching levels not seen in nearly two decades—and disappointing earnings from Walmart. Walmart shares fell over 9% after reporting comparable sales growth of 2.6%, which missed analyst expectations of 3.8%.

Despite the macro environment, Cramer cited Micron Technology as a company with strong long-term potential. Speaking from Micron’s semiconductor expansion site in Boise, Idaho, he noted the company’s significant role in the artificial intelligence supply chain. Micron recently announced plans to invest $10 billion over the next decade in a new Boise research lab, contributing to a broader commitment of over $250 billion toward US manufacturing and research.