Wall Street is feeling bullish on areas like cyclical stocks, industrials, and small-caps as the Fed resumes its rate-cutting cycle.

Wall Street is entering its strongest quarter of the year with markets at their most expensive levels on record. That sets up a paradox for investors. Valuations are stretched like never before but both seasonal and structural tailwinds suggest the rally isn’t slowing anytime soon.

On Wall Street, CarMax tumbled 22.3% after the seller of used autos reported a weaker profit for the latest quarter than analysts expected. It sold fewer vehicles during the quarter than it had a year earlier. It also was hurt because it increased its expectations for losses from loans made in earlier years.

The stock market is shrugging off worries about a weakening labor market and stubborn inflation, instead embracing a much-anticipated interest rate cut.

Next week's U.S. jobs data may need to tread a fine line for Wall Street, revealing a cooling labor market that supports further interest rate cuts without fueling fears about a recession.

Stock bulls looking for the next hot Wall Street trade are increasingly turning to the busiest corner of the US market this year — initial public offerings.

It helped lead several Wall Street analysts to get even more optimistic on Iren stock. Arete Research initiated coverage on Iren with a buy rating and a price target of $78 per share, according to reports.