Jim Cramer says the election did not upend the business cycle. Congratulations. You have been out-analyzed by a man who once told people to buy Bear Stearns.
The Dow jumped 3.03% Wednesday. Best post-midterm gain in 44 years. Democrats took Congress, and traders responded by buying Apple, Microsoft and Amazon. Nvidia fell 2.76%. CoreWeave and Applied Digital sold off too.
The theory was that Democrats would slow data center development. Retail traders heard "slow data center development" and bought the company with the most data centers anyway. Some of them voted.
Cramer's warning is simple. Friday brings the nonfarm payrolls report. He says it could repeal much of the move. He also says he hesitates to guess where we go next. That is the most honest sentence ever spoken on Mad Money. It is also the only one.
JPMorgan's Michael Cembalest says rates, Fed policy, commodity prices, profits and AI spending drive markets. Not Congress. Cramer agrees. Two men in expensive shirts, agreeing that you have been guessing.
CME FedWatch puts a December rate hike at 82%. That number was 77.4% a day earlier. The market spent a historic rally pricing in a bigger hike. Celebrate accordingly.
My chart shows a candle. It is green. Next candle is red or green. I will not be taking questions.
LPL's Jeff Buchbinder notes the S&P 500 has gained an average of 15.1% in the 12 months after midterms since 1950. Positive in all 19 periods. Great. Your portfolio has never once been average.
Cramer says the jobs report will take over the conversation by Friday. Friday, the election will be forgotten, and you will be explaining to your spouse why you bought Apple at an all-time high because of a Senate race in a state you cannot find on a map.
Enjoy the rally. It has the life expectancy of a gas station sushi roll.
Photo by Andy Kennedy on Unsplash
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