Goals at the start of each half had given City the two-goal cushion they needed over a classy Wolves outfit but when substitute Leon Clarke pulled one back, Glenn Hoddle's side piled on the pressure and Joleon Lescott struck the equaliser in the closing seconds.
Cardiff boss Dave Jones gave first starts of the season to Rhys Weston, Glenn Loovens and Joe Ledley while Michael Oakes passed a late fitness test to take his place in goal for the visitors.
The Bluebirds took the lead in the third minute and it came after a storming run by Alan Lee. He won a corner which was fired over to the far post for Lee to head back into the danger area, and Jerome guided it into the net for his fourth goal of the season.
Wolves went straight back on the attack and Neil Alexander was forced to go full length to kick clear before City almost doubled their lead in the ninth minute. A superb pass from Jason Koumas sent Jerome racing away and as Oakes came out to block he slid the ball just wide of the post.
The first half drew to a close with City holding on to their slender lead.
Wolves almost equalised two minutes after the interval when Lescott shot towards the corner but Alexander leapt across to turn the ball away for a corner.
The Bluebirds flew back upfield and, after the ball bobbed about following a Lee shot, Jerome struck his second with a drive that took a slight deflection.
Hoddle made a double substitution on the hour and it was one of those replacements, Clarke, who brought Wolves right back into the game when he rounded Alexander and slipped the ball into the net from an angle.
In time added on Lescott crashed the ball home from close range after a goalmouth scramble to level it up.
Both sides went looking for the winner but it was Hoddle who was the happier man at the end after coming back from a two-goal deficit to snatch a point.