How to trade the market after this week's rally to record highs

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These latest gains came after the Federal Reserve indicated it remained on track to cut interest rates three times this year.

Wall Street had itself a very good week. The Dow Jones Industrial Average popped 2% for its biggest weekly gain of 2024. That gain drove the 30-stock benchmark to an all-time high, putting it within striking distance of 40,000. The S & P 500 and Nasdaq Composite popped 2.3% and 2.9%, respectively, to record levels. Fed Chair Jerome Powell also noted that a strong labor market wouldn't deter the central bank from cutting rates.

mountain NVDA 5-day chart Nvidia shares rose about 7% this week. Small caps? Another area that could be of interest to investors is small caps. Fundstrat's Tom Lee told CNBC he expects the Russell 2000 to rally 50% . "With the Fed doing a dovish pause, and CEOs getting more confident — that means M & A and IPOs — and people looking at other sectors, I do think the Russell can rise 50% this year," Lee said.

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