Jim Cramer sees 'plenty of tinder' that could spark a market rally, including the jobs report

KEY POINTS

• Despite several weeks of a down market, CNBC's Jim Cramer said Wednesday he sees conditions that could spur a stock market rally.
• "We certainly have plenty of tinder for a rally — there are some Kingsfords lying around, maybe even a Duraflame or two," he said. "You get a weak payroll number on Friday, then I think we can get a narrow repeat of the rebound we saw in March."
• Cramer said he's not sure whether the "uniform negativity" on Wall Street — especially talk of declining bond prices — means a bottom, but to him, it's a possibility.

CNBC's Jim Cramer said Wednesday he sees conditions that could spur a stock market rally, following a challenging few weeks on Wall Street. The biggest factor in this, he said, arrives Friday with the government's official September jobs report.

"We certainly have plenty of tinder for a rally — there are some Kingsfords lying around, maybe even a Duraflame or two," he said. "You get a weak payroll number on Friday, then I think we can get a narrow repeat of the rebound we saw in March."

To Cramer, Friday's nonfarm payroll report is the only set of government data with "true staying power." If the figures show more layoffs than expected, he said, the Federal Reserve may be less inclined to raise interest rates, which would likely please the market. However, he added that this potential economic weakness could hurt plenty of sectors, including retailers, banks and housing.

Cramer suggested recent market conditions may end up being similar to those in February and March, where stocks sold off due to concerns about the Fed's aggressive rate hikes and the collapse of multiple regional banks. But this weakness soon gave way to a tech-fueled rally, he said.

To Cramer, this new potential rally may also be led by the Nasdaq Composite's mega-cap tech stocks, which he calls the Magnificent Seven: Apple, Amazon, Alphabet, Microsoft, Nvidia, Meta and Tesla.

He added that he's not sure whether the "uniform negativity" on Wall Street — especially talk of declining bond prices — means a bottom, but to him, it's a possibility.

"Maybe all that needs to happen is for the frantic bond sellers to slow the pace of their sales — they don't even have to stop, they just have to be less desperate," he said. "Once that happens, we can finally focus on the myriad stocks that've been crushed for weeks now, many of which don't deserve it. No need to jump the gun, though. We'll find out soon enough."

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Amazon, Alphabet, Microsoft, Nvidia and Meta.

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