U.S. stock markets experienced a modest decline on Friday, January 12, 2024, despite positive economic indicators and strong performances from small-cap stocks. The major indexes closed lower, with the broad-based S&P 500 down by 0.06% at 6,940, the tech-heavy Nasdaq Composite also slipping 0.06% to 23,515, and the blue-chip Dow Jones Industrial Average falling 0.2% to 49,349. In contrast, the Russell 2000 Index continued its upward trajectory, signaling a robust environment for smaller companies.
The overall trend for U.S. equities remains positive, with participation extending beyond the so-called Magnificent Seven technology stocks. According to Louis Navellier of Navellier & Associates, all major indexes are in the green year-to-date, with the Russell 2000 outperforming the others significantly. “It’s encouraging that small caps are so strong; it reflects a risk-on sentiment about the economy,” Navellier noted, highlighting the index’s achievement of new all-time highs.
Economic data released by the Federal Reserve on Friday indicated that industrial production rose by a better-than-expected 0.4% in December. Additionally, November’s figures were revised upward to reflect the same percentage increase. Economists from Wells Fargo, Shannon Grein and Tim Quinlan, remarked that the combined two-month gain is one of the strongest seen throughout the year, reinforcing positive market sentiment.
Investors should note that stock and bond markets will be closed on Monday, January 15, 2024, in observance of Martin Luther King Day.
A standout performer in the biotech sector this week was ImmunityBio (IBRX), whose market capitalization surged from $2.29 billion to over $5 billion after increasing more than 125% since the previous Friday. The company announced expectations of a remarkable 700% revenue growth from its bladder cancer treatment, Anktiva, which has recently gained approval from the Saudi Food and Drug Authority for use in non-small cell lung cancer treatments. This news has positioned IBRX as an attractive option within biotech ETFs.
The performance of stocks linked to former President Donald Trump also drew attention on Friday. GE Vernova (GEV), a company spun off from General Electric in April 2024, saw its shares rise by 6.1% amid reports that Trump and governors in the northeast are advocating for an emergency auction. This auction aims to have large electricity consumers, particularly those in the AI sector, fund new power plants to support their operations. The PJM Interconnection, which services approximately 65 million customers across 13 states and Washington, D.C., is at the center of this initiative.
Trump expressed his commitment to preventing rising electricity costs for consumers due to data center demands, stating, “I never want Americans to pay higher electricity bills because of data centers.” Analysts from Susquehanna have expressed optimism regarding GEV’s market position due to its status as a leading global gas turbine supplier, especially in a climate of increasing load growth expectations.
Other energy companies such as Constellation Energy (CEG) and Vistra (VST) faced challenges on Friday, with shares dropping by 9.8% and 7.5%, respectively. This decline occurred despite their earlier surge of 58.8% and 17.7% in 2025, driven by heightened demand for electricity amid the AI boom.
As investors look for reliable information to navigate the stock market, resources such as the “Closing Bell” newsletter provide timely updates and insights into market health.
In summary, while Friday’s trading session reflected a slight downturn for major U.S. indexes, the strength of small-cap stocks and positive economic indicators suggest a promising outlook for the broader market.
