S&P 500, Nasdaq 100 Dip, Small Caps Surge; Bitcoin Tops $57,000, 2 Biotech Stocks Skyrocket: What's Driving Markets Tuesday?

On Tuesday, large-cap indices experienced a downturn, while small caps surged, reflecting investor attention on stock valuations.

The iShares Russell 2000 ETF IWM climbed by over 1%, on track for its fourth consecutive session of gains, representing the lengthiest streak since late 2023.

Blue-chip stocks declined by 0.4%, while the Nasdaq 100 dipped by 0.2%, heading for its sixth negative session out of the last seven. Overall, sectors saw minimal movement, with utilities posting a notable gain of 1.3%, while the tech sector slid by 0.6%.

On the macro front, new orders for manufactured durable goods experienced a significant decline of 6.1% in January compared to the previous month, surpassing market projections of a 4.5% decrease. Investors are eagerly awaiting tomorrow’s release of the second estimate of the fourth-quarter GDP data, which initially stood at 3.3%.

In commodities, oil prices surged by 1.4%, with West Texas Intermediate (WTI) reaching $78.50 per barrel, aiming for the highest close since mid-November 2023. Meanwhile, natural gas prices leaped by 4.1%.

Cryptocurrencies seized the investor spotlight again, with Bitcoin BTC/USD climbing over 4%, reaching an intraday high of $57,450 and hitting its highest level since Dec. 12, 2021. This surge was attributed to consistent inflows into spot Bitcoin ETFs, the forthcoming supply halving, and the prevailing bullish sentiment from both retail and institutional investors.

Tuesday’s Performance In Major Indices, ETFs

Major Indices	Price	1-Day % chg
Russell 2000	2,054.69	1.3%
S&P 500	5,065.12	-0.1 %
Nasdaq 100	17,903.65	-0.2%
Dow Jones	38,913.17	-0.4%

The SPDR S&P 500 ETF Trust SPY was 0.1% lower to $505.54, the SPDR Dow Jones Industrial Average DIA fell 0.4% to $389.14 and the tech-heavy Invesco QQQ Trust QQQ inched 0.1% lower to $436.11, according to Benzinga Pro data.

The Utilities Select Sector SPDR Fund XLU, was the notable outperformer, up by 1.5%, while the Technology Select Sector SPDR Fund XLE lagged behind, down 0.4%.

Wall Street Stock Movers On Tuesday

• Shares of Viking Therapeutics Inc. VKTX more than double during Tuesday’s session, following the company’s announcement of promising results for its weight-loss drug in Stage 2 trials.
• Shares of Janux Therapeutics Inc. JANX soared by more than threefold after the drug developer released encouraging interim early-stage data for its experimental therapy aimed at treating an advanced form of prostate cancer.
• Norwegian Cruise Line Holdings Inc. NCLH rallied 16% after the company released stronger than expected revenue and cited strong demand for cruise ahead.
• Clarivate plc CLVT fell by 23% after missing revenue projections.
• Other companies reacting to earnings were Lowe’s Companies Inc. LOW, up 1.75%, American Tower Corp. AMT, down 3%, Autozone Inc. AZO, up 5.4%, DBA Sempra SRA, flat, Constellation Energy Corp. CEG, up over 13%.
• Companies set to report after the closing bell are Republic Services Inc. RSG, Agilent Technologies Inc. A, Extra Space Storage Inc. EXR, eBay Inc. EBAY, First Solar Inc. FSLR

Read now: Robinhood, Coinbase And This Bitcoin ETF Hit New 52-Week Highs As BTC Spikes To $57,000

Image created using artificial intelligence with MidJourney.