BUZZ Investing: BUZZ Index Surges as Fed Cut and AI Leaders Drive Gains

Key Takeaways:

• Fed Pivot: Markets rallied on the Federal Reserve’s rate cut and hints at further easing amid soft labor data.
• AI Tailwind: Intel and AST SpaceMobile soared on landmark AI and telecom partnerships, driving sentiment higher.
• Retail Surge: Meme-like momentum returned with Opendoor and Webull drawing outsized interest from online investors.

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U.S. equities posted further gains during the recent period between index selection dates (September 11, 2025 – October 9, 2025, the “Period”), extending their late-summer momentum and pushing major benchmarks to new highs. The S&P 500 rose and the Nasdaq Composite outperformed, supported by optimism surrounding the Federal Reserve’s long-anticipated 25-basis-point rate cut in mid-September. While the decision was widely expected, the accompanying statement struck a notably dovish tone, with policymakers signaling that additional easing may be appropriate should labor conditions continue to soften. Large-cap technology stocks led performance once again, buoyed by resilient earnings and continued enthusiasm around artificial intelligence. Broader markets benefited from the perception that policy is now pivoting toward supporting growth, helping sustain the rally despite lingering geopolitical and trade-related uncertainty. The BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) returned 17.4% during the Period versus 2.3% for the S&P 500. Year to date, the BUZZ Index has risen 57.9%, compared to the S&P’s 15.7%.

Monetary policy developments loomed large. On September 17, the Fed delivered a 25 basis point rate cut to bring its benchmark to 4.00-4.25%, citing rising downside risks to employment and affirming expectations for more cuts this year. The statement noted that downside risks to the labor market have increased. Treasury yields broadly fell on the news. Labor data remained soft: the August payrolls miss and rising unemployment had already stoked easing expectations; the weak report still appeared to validate the Fed’s shift. Inflation data showed mixed signals, with core measures remaining sticky even as headline prints flirted with moderation. Tariff risk re-entered the equation, notably with new duties announced on lumber and furniture, complicating the outlook for goods inflation. Overall, the Period was defined by equities pressing higher under the tailwind of monetary easing, while macro crosscurrents around inflation and trade reminded markets that the path ahead may not be entirely smooth.

The BUZZ Index returned 12.14% during the month of September compared to a return of 3.65% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 45.21% and 14.83%, respectively, as of the end of September.

AST SpaceMobile and Intel Lead BUZZ Performance on Landmark Partnership Announcements

Shares of AST SpaceMobile (NASDAQ: ASTS) surged 126.2% during the Period, leading contributors to BUZZ Index performance. The move followed the October 8 announcement of a definitive commercial agreement with Verizon (NYSE: VZ) to offer direct-to-cell service to Verizon customers beginning in 2026, leveraging Verizon’s 850 MHz spectrum alongside ASTS’s space-based network. The deal built on successful voice, video, and messaging demonstrations using unmodified smartphones and was widely viewed as a milestone toward commercial rollout, helping re-rate growth expectations for the space-to-cell category.

Intel (NASDAQ: INTC) rose 53.6% during the Period, supported by a series of high-profile announcements that may have reshaped the company’s AI and PC road map. On September 18, NVIDIA (NASDAQ: NVDA) disclosed a $5 billion investment in Intel stock alongside a multi-year collaboration to co-develop data-center and PC products, including x86 system-on-chips integrating RTX GPU chiplets and deeper NVLink connectivity. The partnership was interpreted as a notable vote of confidence in Intel’s technology stack and potential role in next-generation AI platforms. Momentum may have also reflected the U.S. government’s previously announced 9.9% equity stake in Intel in late August, which aimed to bolster domestic semiconductor capacity and added to the sense of balance-sheet support heading into the fall.

Top BUZZ Index Contributors: September 11, 2025 – October 9, 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.

Rocket and DraftKings Pull Back; Execution Risks and New Competition Pressure Shares

Shares of Rocket Companies (NYSE: RKT) declined during the Period, ranking among the leading detractors to BUZZ Index performance. The weakness followed the completion of its acquisition of Mr. Cooper Group (NASDAQ: COOP) on October 1, a transformative deal that created the largest mortgage originator and servicer in the U.S. While strategically compelling, investors may have been cautious about near-term integration risks, potential margin dilution, and execution complexity. Index rebalancing around the close added further technical pressure, as S&P Dow Jones Indices announced the removal of Mr. Cooper from the S&P SmallCap 600 and the inclusion of Western Union in its place. The shift, combined with subdued housing-market sentiment and persistent interest-rate uncertainty, may have contributed to selling pressure even as the combined platform positions Rocket for long-term scale advantages.

DraftKings (NASDAQ: DKNG) was another notable detractor, retreating amid growing concerns over new forms of competition in online wagering. Shares fell sharply in late September after reports highlighted surging trading volumes on federally regulated prediction-market platforms such as Kalshi and Polymarket, which allow users to trade event-based contracts outside traditional state-regulated sports-betting frameworks. The platforms’ nationwide accessibility and favorable tax treatment drew attention from investors who viewed them as potential disruptors to the sports-betting duopoly of DraftKings and FanDuel. The decline erased much of the stock’s summer gains, as traders reassessed near-term growth prospects despite DraftKings’ continued expansion in legalized markets and steady progress toward profitability.

Bottom BUZZ Index Contributors: September 11, 2025 – October 9, 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 October 2025 Rebalance Highlights

New Entrants to the BUZZ Index

This month, the BUZZ Index welcomes several first-time entrants; many tied to high-profile themes dominating market and social media discussions. IREN Limited (NASDAQ: IREN) and Applied Digital Corporation (NASDAQ: APLD) highlight the continued enthusiasm surrounding AI infrastructure and data center development. Rigetti Computing, Inc. (NASDAQ: RGTI) and D-Wave Quantum Inc. (NYSE: QBTS), both leaders in quantum computing, have also gained attention as optimism builds around the path toward commercial adoption of quantum technologies. Shares of QuantumScape Corporation (NYSE: QS), which operates in the lithium battery space, have quadrupled since June amid renewed interest in next-generation energy storage. Collectively, these stocks reflect strong price momentum and elevated investor engagement. The exception is Webull Corporation (NASDAQ: BULL), the online trading platform that went public in April through its merger with SPAC SK Growth Opportunities Corp. After an early surge which saw its shares rally from $11 to an intra-day high of near $80, the stock quickly retraced to the $11 range and has since mostly traded sideways. Sentiment, however, had remained positive, buoyed by favorable comparisons to Robinhood Markets, Inc. (NASDAQ: HOOD), which has gained more than fourfold since spring. BULL enters the Index as the third-largest new addition this month, with a 2.87% weight.

Opendoor Technologies Inc.

Amid this month’s wave of new entrants to the Index, none has drawn more attention than Opendoor Technologies (NASDAQ: OPEN). The stock’s remarkable rally has evoked comparisons to the early days of the meme-stock era led by GameStop. Between July 1 and July 21, shares surged from $0.50 to $5.00, driven by a rapidly expanding online community of retail investors. Much of the renewed enthusiasm centered on Toronto hedge fund manager Eric Jackson, whose unconventional campaign to spotlight Opendoor’s “value” potential, including daily appearances outside rapper Drake’s Toronto residence holding a sign for the “$OPEN Army”, went viral across social media. Following an initial pullback to $2, the stock extended its advance through August and September, reaching over $10 per share before drifting lower. Sentiment across online platforms remains exceptionally strong, underscoring sustained retail engagement and optimism surrounding the company’s recovery narrative. This month, OPEN holds the highest positive sentiment score in the eligible universe and enters the BUZZ Index at the maximum 3% weight.

For more on rebalancing results and a full breakdown of index constituents added and removed for the month, view the BUZZ Index reconstitution report.