BUZZ Investing: Stocks Move Higher on Fed Cut Hopes

Key Takeaways:

• Institutional buying and AI momentum fueled BUZZ Index gains, with UnitedHealth and Nebius leading on strong earnings, contracts, and sentiment.
• Competitive pressures weighed on select equities, with AST SpaceMobile, AMD, and Palantir detracting amid execution concerns and analyst downgrades.
• Index rebalancing spotlight saw Oracle and EchoStar added, reflecting transformative AI cloud growth and spectrum deal momentum.

U.S. equities advanced during the recent period between index selection dates (August 14, 2025 – September 11, 2025, the “Period”), with the S&P 500 and Nasdaq Composite setting additional record highs. Volatility remained muted, with realized volatility across major indices holding near the lowest levels observed this year. Large-cap technology stocks continued to drive performance, supported by strong earnings and renewed enthusiasm around artificial intelligence. Broader markets also benefited from resilience in consumer spending and a policy backdrop that investors interpreted as incrementally more supportive.

Economic data released during the Period helped shape expectations for Federal Reserve policy. At the Jackson Hole Symposium on August 23, Chair Powell acknowledged that monetary policy is restrictive and noted emerging risks in the labor market, remarks that were widely viewed as opening the door to near-term easing. Those expectations gained momentum after the September 5 employment report, which came in weaker than expected, showing payrolls rising by only 22,000 and the unemployment rate increasing to 4.3%, its highest level in nearly four years. Treasury yields fell sharply following the release, with the 10-year moving toward 4.1% as investors priced in a high probability of a September rate cut. On September 10, the Bureau of Labor Statistics reported that August CPI rose 0.4% month-over-month and 2.9% year-over-year, while core CPI held at 3.1%. The figures were largely in line with expectations, suggesting that inflation pressures remain contained and helping to reinforce the case for rate cuts rather than challenge it. Overall, the Period was marked by continued equity gains, muted volatility, and a market increasingly focused on the likelihood of Fed easing amid a backdrop of softer labor data and steady inflation.

The BUZZ Index returned -0.31% during the month of August compared to a return of 2.03% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 29.49% and 10.79%, respectively, as of the end of August.

UnitedHealth Leads BUZZ Performance; Nebius Soars on Multi-Billion AI Contract

Shares of UnitedHealth Group (NYSE: UNH) rallied during the Period, leading contributors to BUZZ Index performance. The stock advanced after 13F filings revealed that Berkshire Hathaway, David Tepper, and several other large institutional investors had initiated or added to positions, a signal that may have reinforced the value thesis supporting the stock. UnitedHealth also reaffirmed its 2025 earnings outlook, offering reassurance after earlier concerns around cost pressures in its Medicare Advantage business. Further, the company disclosed that nearly 78% of its members will be enrolled in Medicare Advantage plans rated four stars or higher, alleviating investor worries around ratings risk and supporting the view that long-term fundamentals remain intact. While challenges tied to medical cost trends persist, renewed interest from high-profile investors and evidence of operating stability may have helped strengthen sentiment during the Period.

Nebius Group (NASDAQ: NBIS) was another top contributor, continuing its rapid ascent on the back of accelerating AI infrastructure demand. The company reported second-quarter revenue of approximately $105 million, representing growth of more than 600% year-over-year and exceeding expectations. Shares surged further after announcing a multi-year agreement with Microsoft, valued at up to $17.4 billion through 2031, which validated investor optimism around its GPU capacity and data center expansion. Management also raised its full-year annual recurring revenue guidance to a range of $900 million to $1.1 billion. These developments supported the view that Nebius is emerging as a key beneficiary of enterprise AI adoption, helping propel the stock to strong gains during the Period.

Top BUZZ Index Contributors: August 14, 2025 – September 11, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.

AST SpaceMobile Leads BUZZ Detractors as Competitive Pressures Mount

Shares of AST SpaceMobile (NASDAQ: ASTS) were among the leading detractors to BUZZ Index performance during the Period, pressured by rising competitive concerns and a high-profile analyst downgrade. On September 9, UBS cut its rating on the stock to neutral from buy, reducing its price target to $43 from $62. The downgrade followed news that SpaceX’s Starlink had acquired key spectrum licenses from EchoStar, a move that analysts argued strengthens Starlink’s position in the emerging space-to-cellular market and increases execution risk for AST. While UBS noted there is room for multiple players in the segment, the report highlighted how AST’s smaller, nascent constellation may face challenges in scaling utilization at the same pace as its larger rival. The downgrade was compounded by downward revisions to long-term revenue and EBITDA estimates, reflecting a more cautious outlook on the company’s growth trajectory. Although AST continues to benefit from carrier partnerships and differentiated technology, the combination of rising competitive pressure and tempered analyst expectations weighed heavily on the stock during the Period, leaving it as a notable detractor to Index performance.

Bottom BUZZ Index Contributors: August 14, 2025 – September 11, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein

BUZZ Index September 2025 Rebalance Highlights

Oracle Corporation

Shares of Oracle (NYSE: ORCL) surged following its September 9 earnings release, which, while broadly in line with expectations on revenue and profitability, was overshadowed by an outlook that stunned the market. Management projected its cloud infrastructure business will grow by at least 70% annually over the next four years, a forecast that investors viewed as a powerful endorsement of Oracle’s positioning in the AI era. Shares spiked as much as 40% intraday, adding nearly $300 billion in market value in a single session, one of the largest one-day market cap increases in history. The extraordinary move also briefly vaulted founder Larry Ellison, who owns roughly 1.2 billion shares of Oracle, past Elon Musk as the world’s wealthiest individual. Investors interpreted the announcement as a clear signal that Oracle may emerge as a leading beneficiary of AI-driven enterprise demand, dispelling prior concerns about its competitive relevance in the cloud. This month, Oracle joins the BUZZ Index with a 2.49% weight.

EchoStar Corporation

Shares of EchoStar (NASDAQ: SATS) soared during the Period following a pair of transformative spectrum transactions. On August 26, the company announced the sale of a portion of its wireless spectrum to AT&T (NYSE: T) for approximately $23 billion, a deal that marked a pivot away from owning infrastructure toward strengthening its Boost Mobile network. Shares surged over 70% on the news. Two weeks later, EchoStar unveiled another landmark agreement, selling additional spectrum licenses to SpaceX for $17 billion. The deal provides Starlink satellites with direct-to-cell capability, significantly expanding SpaceX’s mobile reach and reinforcing the strategic value of EchoStar’s spectrum portfolio. SATS rallied another 20% on the announcement, as investors viewed the combined transactions as transformative to the company’s financial profile. With materially improved liquidity, a stronger balance sheet, and reduced debt, EchoStar enters the BUZZ Index for the first time this month with a 0.51% weight.