Happy Friday! Small caps are writing a rare chapter in market history. With a streak not seen since 2008, the Russell 2000 is charging ahead while the Magnificent Seven lags behind. Read on see what’s fueling the surge and how you can capitalize on it.

Plus, crypto stocks hit turbulence as Coinbase and Robinhood plunged on news of stalled legislation that could reshape the market. Discover why this could be a pivotal turning point for crypto companies.

Also, if you’re looking to capitalize on the growing demand for critical minerals, check out today’s sponsor.

Note: The U.S. stock market will be closed Monday in observance of Martin Luther King Day. As a result, there will be no edition of the newsletter. We’ll be back with more market insights and news on Tuesday.

In Today's Edition

• SPONSORED CONTENT

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

David vs. Goliath: Why Small Caps Are Crushing The Magnificent 7

The Russell 2000 kicked off the new year with fireworks, storming to fresh highs and stealing the spotlight from the Magnificent Seven.

As of yesterday, the small-cap benchmark has notched intraday record highs in each of the past 10 sessions. During the same stretch, small caps outperformed large caps every single day.

Streaks like this are exceedingly rare, with the last comparable run occurring in June 2008. History suggests moves like this often mark the beginning of something much bigger. Read on for all the details.

Rare Earth And Critical Minerals Are Coming Home; SETM Gives Investors Exposure To That

The U.S., Europe and the West are racing to lessen their demand on China for rare earth and critical minerals. That presents an opportunity for investors to gain exposure to the companies that stand to benefit.

The Sprott Energy Transition Materials ETF (SETM) gives investors that exposure, aiming to capitalize on the growing demand for critical minerals and their integral role in the global economy.

Instead of just investing in one area, this ETF covers it all from uranium to copper, offering diversified exposure to a wide range of material companies. Through SETM investors can capture broad market opportunities and reduce single-commodity risks. To learn more about SETM and get started investing, click here.

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Yesterday: U.S. indexes rallied Thursday as easing geopolitical tensions lifted risk appetite after President Trump said military action against Iran is not imminent. Oil prices tanked on the news after surging the past few days with gold falling as well. Chip stocks led the market higher after Taiwan Semiconductor delivered a blowout earnings report that easily topped expectations, reviving optimism around the artificial intelligence trade. Financials rebounded nicely as well thanks to Goldman Sachs and Morgan Stanley posted better-than-expected earnings, driven by strength in investment banking. On the economic front, initial jobless claims for last week fell to 198,000, below expectations of 215,000, with continuing jobless claims edging lower too.

On Our Radar: Analysts will be paying attention to industrial production and capacity utilization figures, the home builder confidence index, and comments from Fed officials (Collins, Barkin, Bowman, and Jefferson) for insights into growth trends and monetary policy signals. With regards to earnings and due to the holiday on Monday, all eyes will be on 3M (MMM) and D.R. Horton (DHI) which report before the market opens on Tuesday.

Semiconductor stocks led the advance after blockbuster quarterly results from Taiwan Semiconductor (TSM) reignited enthusiasm across the AI supply chain with AMD (AMD), and ASML (ASML) among the biggest gainers. On the flip side, Reddit (RDDT), Coinbase (COIN) and Robinhood (HOOD) were some of the biggest laggards of the day.

But those weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Thursday.

Discover how the market is moving with our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Chip Surge: TSMC blew past Wall Street expectations, and CoreWeave and Nebius are already feeling the surge as AI chip demand skyrockets. Don’t miss how these companies could ride the wave — and why today’s results are a gamechanger.

Downgrade: After an 18-month streak, Rocket Lab just got a rare downgrade—but the stock’s meteoric rise isn’t over. Click to see what’s holding back Wall Street and why investors are still watching this space closely.

Bank Boost: Wall Street’s biggest banks are powering financial ETFs higher, shrugging off political noise and signaling renewed sector strength. Click to see which heavyweights are driving gains — and what it could mean for your ETF portfolio.

EV Shakeup: Tesla’s U.S. sales are stumbling, while global EV demand continues to surge. Find out which companies could become the next big winners.

Stock Of The Day: After a sharp drop, shares of Airbnb have finally hit a critical floor, however, history shows this level can flip in a heartbeat. Here’s what Wall Street is watching.

See How Congress Is Trading The Market

Benzinga Edge’s Government Trade Tracker lets you monitor stock trades filed by U.S. lawmakers under the STOCK Act. See over 440 active trades across 185 members of Congress, with average performance tracking near +16.9%. Over the past 12 months alone, lawmakers have pulled more than $91 million out of the market — revealing themes retail investors often miss.

On This Day In 2009…

During the financial crisis, Bank of America revealed steep losses tied to its acquisition of Merrill Lynch, triggering a sharp sell-off in its shares and renewed fears about the stability of the U.S. banking system. In response, the U.S. government agreed to provide $20 billion in additional TARP funding and guarantees on hundreds of billions of dollars of troubled assets to help stabilize everything. The bailout became one of the most prominent examples of government intervention, and highlighted the importance of Bank of America within the U.S. financial system.

QUOTE OF THE DAY

“I don’t look at my winners, I look at my losers.“

— Steve Cohen

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