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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Federal Reserve still sees rate cuts for 2024; stocks rally to records on Wall StreetStocks rallied to more records after the Federal Reserve indicated it’s still likely to deliver the interest rate cuts this year that Wall Street craves.
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