Happy Wednesday! The markets staged a sharp rebound yesterday, but not before it breached a key level in a move that has historically brought sharp selloffs and some of the market’s strongest rallies. Read on to see where the market is likely headed next.

Also, the global drone market is set to double over the next decade, but not all opportunities are created equal. Discover the 3 small-cap drone picks poised for takeoff.

Plus, if you’re looking to invest in a global AI-powered audio company, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• BENZINGA NEWSLETTER SPOTLIGHT

Market Expert Highlights Importance Of Market Falling Below 200-Day Moving Average

When the S&P 500 recently slipped below its 200-day moving average, veteran Wall Street strategist Jay Woods warned it wasn’t just noise, it was a signal.

Historically speaking, the move has brought sharp selloffs and some of the market’s strongest rallies. While past patterns suggest quick recoveries are common, this time may be different. Here’s what it could mean for your portfolio.

Sound Group Returns To Profitability, Full Year Revenue Grows By 53% As AI Revolution Takes Off

Sound Group Inc. (SOGP), a global AI-powered audio company, reported growth in 2025, with revenue growing 53% year-over-year and net income coming in at $31.6 million, a $43M turnaround from prior year loss, underscoring the company’s momentum as it leverages its expertise and AI know-how to transform.

At the same time that Sound Group is growing revenue at double-digit rates, operating expenses only grew by 6%. The company ended the year with gross margins that expanded to 29% from 27% and operating income of $31 million. To learn more about Sound Group, click here.

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Yesterday: U.S. indexes finished sharply higher Tuesday, delivering their strongest one-day performance gains since May, as easing geopolitical concerns lifted investor sentiment after President Trump signaled he was open to ending U.S. military operations in Iran, even if the Strait of Hormuz remains closed. Technology and communication services led the way, advancing more than 4%, while energy and utilities were the only sectors not in the green. Treasury yields declined modestly, with the 10-year yield at 4.32% and the 2-year at 3.79%. Despite the sharp rebound, all major indexes ended the month in the red.

On Our Radar: Analysts will be paying attention to the ADP jobs report, U.S. retail sales data, and ISM and PMI manufacturing readings for a combined signal on labor market strength, consumer demand, and industrial momentum. On the earnings front, all eyes will be on AngioDynamics (ANGO), which will report before the market opens Thursday.

The market posted a sharpy rebound with chip and memory stocks leading the way higher as On Semiconductor (ON), Marvell (MRVL), Arm (ARM), and Sandisk (SNDK) were among the top gainers on the day. Meanwhile energy tanked with Constellation (CEG), Devon (DVN) among the day’s top laggards. But those weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Tuesday.

Check out our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Victory Lap: Michael Burry, the Big Short 2.0, teases his controversial AI short on Palantir and Nvidia after both stocks hit lows over the past quarter. Here’s all the details.

Market Hack: Billionaire John Arnold claims he’s cracked the code to the stock market, and it doesn’t involve complicated trades either. Click to see the surprising approach that’s turning heads.

AV Shift: Tesla isn’t the only player anymore. See how Waymo, Uber, and Nvidia are rewriting the rules and building the AV stack.

Big Miss: Shares of RH plunged after its Q4 report shocked Wall Street, missing both revenue and earnings estimates. See what analysts are saying and if the selloff presents a buying opportunity or something to stay away from.

Stock Of The Day: The tide has turned as a classic reversal pattern just formed. See the setup savvy traders are watching.

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