BUZZ Investing: Stocks Push Higher Amid Low Volatility and Policy Crosscurrents

Key Takeaways:

• AI and tech momentum fueled BUZZ Index gains, with standout performances from Palantir, Reddit, and AMD.
• Crypto-related equities underperformed despite Bitcoin's strength, reflecting investor concerns over profitability, execution, and competition.
• Investor sentiment shifts led to key index changes, including the addition of Barrick Mining and a rebound in UnitedHealth following major institutional buying.

U.S. equities extended their advance during the recent period between index selection dates (July 10, 2025 – August 14, 2025, the “Period”), with the S&P 500 and Nasdaq Composite reaching multiple new all-time highs. Volatility remained subdued, with 30-day realized volatility on major indices falling to some of the lowest levels observed over the past year. Large-cap technology stocks led the move higher, supported by a series of strong earnings reports that reinforced confidence in forward growth expectations. Broader market strength was aided by progress on trade policy, including a new U.S.–EU investment framework, and reduced political friction following the passage of the “One Big, Beautiful Bill” in Washington. The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index") returned 4.3% during the Period, compared to a gain of 3.1% for the S&P 500. Year to date, the BUZZ Index has returned 30.7%, outperforming the S&P 500’s 10.8% gain.

Macroeconomic data released during the Period reflected continued strength alongside signs of gradual moderation. U.S. GDP grew at an annualized rate of 3.0% in the second quarter, reversing the decline in Q1 and reinforcing a steady near-term growth outlook. July inflation data remained contained, with headline CPI rising 2.7% year-over-year, broadly in line with expectations. Labor indicators pointed to some cooling, with a slight rise in unemployment claims and fewer job openings. The Federal Reserve held rates unchanged at its July meeting, while public comments from Fed officials suggested growing divergence on the timing and scope of potential policy easing. In fixed income, Treasury yields edged lower, with the 10-year falling to approximately 4.28% by mid-August. The U.S. dollar firmed modestly, while credit markets remained constructive, supported by healthy issuance and firm demand. Commodities were relatively stable, with crude oil and gold both trading in narrow ranges. Overall, the Period was marked by continued equity strength, supportive macro conditions, and a market increasingly focused on upcoming Fed communications, including the Jackson Hole symposium.

The BUZZ Index returned 6.41% during the month of July compared to a return of 2.24% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 29.90% and 8.59%, respectively, as of the end of July.

Shares of Palantir pace BUZZ Index Gains

Shares of Palantir Technologies (NYSE: PLTR) rallied sharply during the Period, leading contributors to BUZZ Index performance. The company reported its first-ever quarter with revenue above $1 billion, supported by 53% growth in U.S. government sales and a 93% surge in U.S. commercial revenue. Adjusted EPS of $0.16 beat expectations, while management raised full-year guidance to a range of $4.14–$4.15 billion. Investors responded positively to the accelerating adoption of Palantir’s Artificial Intelligence Platform (AIP), which is being deployed across industries from financial services to manufacturing alongside large government contracts such as a $10 billion U.S. Army award. While valuation remains elevated, strong execution and repeated earnings beats have reinforced Palantir’s position as a leading AI beneficiary.

Reddit (NYSE: RDDT) was another top contributor, gaining more than 70% during the Period. Shares surged after the company posted second-quarter revenue growth of 78% and a 21% year-over-year increase in daily active users, easing concerns over prior Google search-related traffic headwinds. Management highlighted growing adoption of AI-driven advertising tools and raised its outlook for the third quarter, projecting revenue well above consensus estimates. The results helped the stock recover from spring weakness and propelled it back to record highs, underscoring Reddit’s positioning as both a key digital advertising platform and a valuable source of data for AI applications.

Top BUZZ Index Contributors: July 10, 2025 – August 14, 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.

Crypto Equities Weigh on the BUZZ Index

Despite Bitcoin advancing during the Period, several high-profile crypto-linked equities were among the top detractors in the BUZZ Index. Marathon Digital (NASDAQ: MARA) declined as rising network difficulty and softer monthly production figures weighed on sentiment toward mining profitability. Coinbase Global (NASDAQ: COIN) also traded lower, giving back earlier gains as quarterly results modestly missed expectations and optimism around higher digital asset prices did not fully translate into trading activity or revenue momentum. MicroStrategy (NASDAQ: MSTR) underperformed as well, diverging from the strength in Bitcoin. While the company continues to emphasize its large Bitcoin holdings, investor attention may be shifting toward newer alternatives, including the growing popularity of institutional Bitcoin ETFs and the rise of corporate treasury-style offerings. These developments may be diminishing MicroStrategy’s unique role as a listed proxy for direct Bitcoin exposure. Concerns around continued equity issuance and the reliance on leverage to expand its Bitcoin position may have also contributed to investor caution during the Period.

Bottom BUZZ Index Contributors: July 10, 2025 – August 14, 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 August 2025 Rebalance Highlights

Barrick Mining Corporation

Gold staged a significant breakout last year after a prolonged period of consolidation, gaining nearly 70% since January 2024, and the rally has since extended to silver and copper, suggesting that investor interest in commodities may be broadening. Mining equities, long viewed skeptically after years of underperformance relative to the metals themselves, have begun to show renewed strength, with the VanEck Gold Miners ETF (NYSE ARCA: GDX) and the VanEck Junior Gold Miners ETF (NYSE ARCA: GDXJ) each posting significant gains year-to-date.. This shift may reflect a change in perception toward the sector, as investors appear increasingly open to the idea that miners could participate more meaningfully in the current commodity cycle. Within this backdrop, Barrick Mining Corporation (NYSE: B), the world’s second-largest producer, enters the BUZZ Index in August as its largest new addition. Shares of Barrick are up more than 50% year-to-date and improving investor perception may indicate growing confidence that the sector is at the start of a more durable recovery. Barrick joins the BUZZ Index this month with 0.86% weight.

UnitedHealth Group

In May 2025, we highlighted the rebound in investor sentiment toward UnitedHealth Group (NYSE: UNH), even as the company continued to face negative headlines. At that time, UNH reached the Index’s maximum 3% weight, reflecting the conviction some investors may have had in the emerging value thesis. Sentiment has continued to strengthen in recent months, even as the stock retested its May intraday low of $250. A potential inflection may have come on August 15, when 13F filings showed that Berkshire Hathaway, David Tepper, and several other large institutional managers had initiated or increased positions. The stock gained nearly 12% the following day, which may have reinforced the view that long-term investors see opportunity despite ongoing challenges. While the stock has rebounded from its lows, it continues to trade at roughly half of its all-time high, leaving scope for additional recovery if the value narrative persists. This month, UNH ranks among the top five sentiment leaders and remains at the Index’s maximum 3% weight, highlighting how it may be viewed as one of the more notable large-cap recovery opportunities in the market.