Wall Street isn’t flinching at war headlines—and CNBC’s Jim Cramer says that’s no accident. The real force driving stocks higher isn’t geopolitics, but a far more powerful trigger: falling interest rate pressure that’s keeping the market’s rally alive and rewriting the rules of risk.

Cramer said investors are leaning decisively on interest rates rather than global conflict, helping fuel a sharp rebound in stocks.

Rates Drive Market Resilience

Cramer said on Monday that low interest rates continue to support equities despite adverse conditions. “I think I’ve been negligent in bringing up the power of low rates, because it’s the reason the bulls keep winning when it seems like they should be slaughtered,” he said, adding, “Let’s not overthink it. If interest rates were spiking, this market would be very different.”

Indexes Rally Despite Oil Shock

On Monday, the S&P 500 rose 1.02% to 6,886.24, its highest close since the conflict began, while the Nasdaq Composite gained 1.23% to 23,183.74 and the Dow Jones Industrial Average added 301.68 points (0.63%) to 48,218.25, recovering from earlier losses, CNBC reported on Tuesday.

Cramer noted the S&P 500 is now within 1.5% of its January record despite oil disruptions, saying, “But history is being disobeyed and ignored,” while pointing out the 10-year Treasury yield peaked on March 27 and the index bottomed on March 30.

Cramer argued that as long as rates don’t spike, investors will continue paying more for stocks, and the Federal Reserve may even lean toward rate cuts by treating tariff- and war-driven inflation as temporary.

He also highlighted that stronger reliance on natural gas helps cushion inflation pressures. Overall, he emphasized that interest rates, not geopolitical events, remain the primary driver of stock prices.

Tech Leads Gains As Analysts Weigh In

Tech stocks such as Oracle Corp. (NYSE:ORCL) and Palantir Technologies Inc. (NASDAQ:PLTR) led gains on Monday, alongside names like Salesforce, Inc. (NYSE:CRM) and Microsoft Corp. (NASDAQ:MSFT), while energy lagged.

Fundstrat head of research Tom Lee told CNBC, “The market does have a really good way of discounting outcomes. And I think the reason it’s going up is … we’re gonna end up with a favorable outcome.” Bellwether Wealth president and chief investment officer Clark Bellin cautioned that investors are “back to the drawing board,” while UBS said historical trends still point to a potential recovery.

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