Wall Street’s Midterm Rally Faces Its Real Test on Friday, Jim Cramer Warns

Jim Cramer, the CNBC Mad Money host, said the October U.S. jobs report due Friday morning could reverse much of the rally that followed Democrats’ midterm wins, because the data will shape expectations for Federal Reserve rate increases. After the election, the Dow rose 3.03% to 53,356.12, its best day since April 2025, while the S&P 500 gained 1.58% and the Nasdaq Composite 1.44%; the total crypto market rose nearly 2%. CME FedWatch put December hike odds at 82%, up from 77.4% a day earlier, after the Fed held rates at 3.75% to 4.00% on October 28. Economists polled by Reuters expect 65,000 new jobs in October and unemployment at 4.2%.