Happy Tuesday! After years in the shadows, small-cap stocks are making a surprising move — and history shows this could signal a major market shift. Find out what’s behind the surge and why it could matter to your portfolio.

Also, the Sphere's 30% surge late last week has investors looking for the next big short squeeze. Here’s a look at the 10 most shorted stocks right now.

Plus, if you’re looking for a smart way to diversify your portfolio with ETFs backed by decades of research, check out today’s sponsor.

In Today's Edition

• SPONSORED CONTENT

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

Small Caps Are Finally Waking Up — And It's Sending A Big Macro Signal

After years of underperformance and being in the shadows of mega-cap tech, small caps have surged this year and are beginning to shine.

And based on history, that’s one of the clearest signals a new market cycle is underway.

Read on for the full breakdown and details.

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Last Week: U.S. indexes closed Friday little changed following a largely in-line January consumer price index (CPI) report, which showed headline inflation rising 0.2% month over month and 2.4% year over year — slightly below expectations. Despite the mild session, all three major indexes posted their largest weekly declines of the year with the Dow falling 1.2%, the S&P 500 losing 1.4%, and the Nasdaq down 2.1%, marking its fifth consecutive weekly loss. Growth sectors, particularly technology, have lagged this year after leading markets higher the past three years. Software stocks in particular have been especially weak, with the S&P 500 software and services industry group down roughly 20% this year, amid AI concerns. This has started to spill over to other areas such as real estate, trucking and financial services as well.

On Our Radar: Analysts will be paying attention to the Empire State manufacturing survey and the home builder confidence index for early signals on industrial momentum and housing demand. On the earnings front, all eyes will be on Medtronic (MDT), and Palo Alto (PANW) which report today.

Shares of Rivian (RIVN) soared the most in company history with shares up nearly 30% on Friday. In addition, Coinbase (COIN) and Hubspot (HUBS) also soared double digits. Meanwhile, Pinterest (PINS) and Draftkings (DKNG) were 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 Friday.

See how the market is moving with our interactive heatmap.

Moon City: Shares of Rivian just had their biggest surge in company history, stunning Wall Street and shaking up the EV market. Find out what triggered this massive rally.

Setting Sail: Shipping stocks are quietly riding a wave of big gains. With tight vessel supply and rising global demand, see which companies are poised for big gains.

Streaming Surge: Shares of Roku are flying high as analysts raise their price targets after earnings. Click to see which upgrades are fueling the rally and how high shares could climb.

Bulls vs. Bears: Here’s a look at some of the top stocks (Meta, Cloudflare, Lyft, AppLovin, etc.) making headlines over past week for bulls and bears.

Stock Of The Day: Shares of Coinbase just hit another major support level. Click to see what traders are watching and where shares are likely headed next.

Final Day: 50% Off Benzinga Pro Ends Tonight

Volatility remains elevated and reactions are getting sharper across the market. Delayed headlines and noisy tools are a dangerous setup in this environment. This is your last chance to lock in 50% off Benzinga Pro Annual.

On This Day In 2013…

U.S. Airways and American Airlines announced a merger that would create the world’s largest airline at the time. Structured as a stock-based transaction, the merger gave AMR creditors a majority stake in the new company, while U.S. Airways shareholders retained significant ownership. The consolidation marked a major turning point in the post-financial-crisis reshaping of the airline industry, following earlier mergers such as Delta–Northwest and United–Continental. The combined airline began operating under the American Airlines name, further concentrating market share among the “Big Four” U.S. carriers.

QUOTE OF THE DAY

“The market is made up of humans. And humans are not always rational.“

— George Soros

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