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As bond yields soar, Jim Cramer is shaking off the inflation fears which can be messing up shares

The debt market continued to weigh on the stock market on Thursday, triggering another brutal sell-off that hurt the growth names in particular, CNBC's Jim Cramer said.

"The bond market sees that the economy is preparing for the reopening … and it seems that the last thing we need is more stimulus," said the host of "Mad Money". "To these bond investors … it's like throwing gasoline at the Kingsfords. They think the economy is going to overheat … [and that] we're going to have serious inflation."

The yield on the 10-year US Treasury bill, a key rate barometer, was 1.6% on Thursday for the first time in a year. Meanwhile, the tech-heavy Nasdaq Composite fell 3.52%, its worst session since late October, to close at 13,119.43.

The Dow Jones Industrial Average and S&P 500 also suffered huge losses, leaving investors with few opportunities to make a profit in the market that day. The blue chip index lost nearly 560 points to close at 31,402.01, a decrease of 1.75%. The benchmark fell 2.45% to 3,829.34.

Inflation worries put investors off high-growth names for another day this week. Earlier this week, Federal Reserve Chairman Jerome Powell re-pledged to keep policy rates near zero to help the economy emerge from the downturn caused by the pandemic. Elsewhere in Washington, Biden's administration wants to woo lawmakers to pass a $ 1.9 trillion coronavirus aid package, which has also sparked fears of a rising consumer price index.

Inflation is putting a strain on the currency and consumers' purchasing power.

"From my point of view, Powell and Biden are doing the right thing. I don't mind a little inflation every now and then," but "Investors are selling bonds and pushing long-term interest rates up," Cramer said. "When that happens, stock buyers withdraw. They always do."

"And they're pulling back heavily on high-growth stocks that pay a high price in times of inflation," he said. "That happened today."

The market decline has hit every corner of the industry. All 11 S&P sector indices were in the red at close of trading, with the consumer staples and technology segments falling more than 3%. Of the 30 stocks in the Dow index, only Merck, Johnson & Johnson and 3M had a positive trading day.

Apple, Boeing and Salesforce were among the biggest losers of the day.

Disclosure: Cramer's charitable foundation owns shares in Apple, Salesforce, and Boeing.

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