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Stocks and crypto rallied after Democrats won control of Congress, but Jim Cramer warned that Friday's October jobs report could undo much of the gain, BeInCrypto reported. The CNBC Mad Money host said the data will shape expectations for Federal Reserve rate increases, a risk that applies equally to crypto traders.

The Dow rose 3.03% to 53,356.12, its best day since April 2025. The S&P 500 gained 1.58% to 7,688.62 and the Nasdaq Composite added 1.44% to 25,736.51. US stocks added about $1.2 trillion in market value, according to The Kobeissi Letter, while the total crypto market rose nearly 2%, with all top 10 assets trading higher.

Technology split along AI spending exposure. Investors bet tougher opposition to data centers would slow the AI buildout and trim hyperscaler spending: Microsoft jumped 6.70%, Amazon gained 6.58% and Apple climbed 5.54% to a record. Companies dependent on that spending moved the other way, with Nvidia down 2.76% and AMD, CoreWeave, Nebius and Iren also under pressure.

Cramer said the election had not upended the business cycle, siding with JPMorgan strategist Michael Cembalest, who argues that rates, Fed policy, profits and AI-related borrowing drive markets and that midterms affect none of them. The Fed held rates at 3.75% to 4.00% on Oct. 28, with two officials voting for a hike.

Rate expectations barely shifted. CME FedWatch still put December hike odds at 82% after the vote, up from 77.4% a day earlier. Cramer said the midterm results controlled Wednesday's trading, but that by Friday attention would move to the Labor Department's nonfarm payrolls and much of the move could be reversed, adding that he was reluctant to guess where markets go next.

Economists polled by Reuters expect 65,000 new jobs in October, up from 29,000 in September, with unemployment holding at 4.2%. Early data leans stronger: ADP counted 86,000 private jobs against a 75,000 forecast and Vanguard expects 120,000, though Reuters noted ADP has been a poor guide to the official figures.

A hot report could firm hike bets and lift Treasury yields, pressuring the tech stocks and crypto that rallied. A soft one could ease hike odds and extend the gains. The report lands Friday morning before the US market opens.