'Fast Money' traders talk markets hitting new record highs including the Russell 2000

Market Overview - Major averages on Wall Street are reaching all-time highs, with the NASDAQ up about 1% and the small-cap Russell 2000 leading gains with an increase of over 2.5%, marking its first record close since November 2021 [1] - The benchmark 10-year yield increased, reaching 4.14%, reversing a brief drop below 4% [2] Economic Sentiment - David Tepper, President of Appaloosa Management, expressed caution regarding potential interest rate hikes, suggesting that further increases could lead to dangerous territory for the economy [3][5] - Despite the caution, the stock market remains buoyant, with a mixed view on valuations, indicating that average stocks are not cheap [4][6] Job Market Data - Jobless claims showed a decline, providing positive sentiment about the labor market, which supports the notion that the economy is not deteriorating [8] Investment Strategy - The current market environment is described as "Goldilocks," with the Federal Reserve in an easing position and a stable economy, despite high stock valuations [8] - There is a noted divergence between the S&P 500 reaching new highs while 10-year yields have increased, suggesting potential caution for investors if yields rise significantly [10] Sector Performance - A rotation is observed in major tech stocks, with some underperforming despite the overall market gains, indicating a potential shift in investor sentiment [11] - The market may require a period of digestion as valuations reach ceilings, particularly in the workhorse segments of the market [13][14]