Key Takeaways

• Markets looked through intra-period volatility: U.S. equities advanced between selection dates (July 9 – August 13, 2026) even as renewed U.S.–Iran hostilities and disruption around the Strait of Hormuz drove oil sharply higher, with leadership broadening into energy and financials before crude retreated and equities closed at a record.
• A leveraged AI fund unwind drove a round trip in semiconductors: Situational Awareness lost roughly 67% in July and sold its approximately $16 billion public-equity portfolio (the listed-equity portion of roughly $45 billion in assets under management) to Citadel Securities on July 30, and once that forced seller was removed, AI infrastructure and semiconductor names rebounded sharply in early August. Source: Bloomberg.
• Rate expectations flipped from hawkish to neutral: the Federal Reserve held its target range at 3.50%–3.75% in a divided 9-3 vote on July 29, but a weaker employment report and softer July consumer and producer inflation readings eased pressure on growth equities and supported the late-Period recovery.

U.S. equity markets advanced during the recent period between selection dates (July 9, 2026 – August 13, 2026, the “Period”), although the headline returns masked considerable volatility beneath the surface. The S&P 500 gained 3.5%, the Nasdaq Composite rose 2.3%, and the BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) advanced 1.9%. The Period began with investors focused on renewed hostilities between the United States and Iran following the breakdown of an earlier ceasefire. Disruptions around the Strait of Hormuz drove oil prices sharply higher at points during the Period, reinforcing concerns that higher energy costs could prolong inflation and further complicate the outlook for monetary policy. Energy equities benefited from the rise in crude, while financials and other value-oriented sectors also performed well as market leadership broadened beyond the largest technology companies. By the end of the Period, however, oil prices had retreated from their highs, and the S&P 500 had reached a new record, illustrating the market’s continued willingness to look through geopolitical uncertainty where earnings and economic data remained supportive.

Technology and semiconductor equities experienced a much less orderly path. The Philadelphia Semiconductor Index declined 3.9% during the Period, but that comparatively modest result concealed a severe intra-period correction followed by a sharp recovery in early August. The decline was amplified by the forced unwind of Situational Awareness, a highly leveraged AI-focused hedge fund managed by Leopold Aschenbrenner. After losing approximately 67% during July, according to Bloomberg, the fund sold most of its roughly $16 billion public-equity portfolio — the publicly traded portion of approximately $45 billion in assets under management — to Citadel Securities, including substantial positions across AI infrastructure and semiconductor companies. The transaction removed a significant forced seller from the market and was followed by a recovery across many of the affected securities.

Monetary policy and incoming economic data produced an equally sharp shift in sentiment. On July 29, the Federal Reserve voted 9-3 to maintain the federal funds target range at 3.50% to 3.75%, with three members dissenting in favor of an immediate increase. The divided decision, together with Chair Kevin Warsh’s continued emphasis on restoring price stability, reinforced expectations that interest rates could remain restrictive and contributed to further pressure on long-term Treasury yields. The tone changed in August as a weaker employment report, and more moderate consumer and producer inflation readings, reduced expectations for a near-term rate increase. July producer prices were unchanged from the prior month, while falling energy prices contributed to a decline in goods inflation. These developments eased some of the rate pressure on growth equities and helped support the late-Period recovery in technology and semiconductors. By August 13, the S&P 500 had closed at a fresh record, leaving the market higher despite the geopolitical, policy, and positioning shocks experienced along the way.

The BUZZ Index returned -10.20% during the month of July compared to a return of -0.06% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index lags the S&P 500 with returns of 2.67% and 10.14%, respectively, as of the end of July.

Super Micro Computer and Palantir Lead BUZZ Index Gains

Super Micro Computer, Inc. (NASDAQ: SMCI) was a leading BUZZ Index gainer during the Period, rising 38.7% and adding 1.23% to BUZZ Index performance. After declining alongside the broader semiconductor sector, the shares rebounded sharply following a preliminary fiscal fourth-quarter update that disclosed more than $60 billion of new orders, a record backlog, and expected gross margins of 15% to 17%, well above prior guidance of 8.2% to 8.4%. Full quarterly results provided further support, as strong AI infrastructure demand, improved profitability, and fiscal 2027 revenue guidance of $65 billion to $72 billion reinforced investor confidence in the company’s growth outlook.

Palantir Technologies Inc. (NASDAQ: PLTR) also gained 38.7% during the Period, contributing 1.21% to BUZZ Index performance, with most of the advance occurring after the company reported better-than-expected second-quarter results. Revenue increased 93% from the prior year to approximately $1.94 billion, led by 149% growth in U.S. commercial revenue and 90% growth in U.S. government revenue, while adjusted earnings per share exceeded consensus expectations. Management also raised its full-year revenue guidance to between $8.15 billion and $8.16 billion, supporting renewed investor confidence that demand for Palantir’s AI software remained strong across both commercial and government customers.

Top BUZZ Index Contributors: July 9, 2026 – August 13, 2026

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.

ImmunityBio and Tesla Lead BUZZ Index Decliners

ImmunityBio, Inc. (NASDAQ: IBRX) was a leading BUZZ Index detractor during the Period, declining 13.8% and reducing Index performance by 55 basis points. The shares trended lower despite several constructive developments, including United Arab Emirates marketing authorization for ANKTIVA across certain bladder and lung cancer indications. The company subsequently reported record quarterly net product revenue of $50.7 million, an increase of 92% from the prior year, but continued operating losses tempered the market’s response to its commercial and regulatory progress. Despite continued commercial and regulatory progress, the shares remained under pressure as investors weighed ANKTIVA’s expanding opportunity against the company’s ongoing losses and capital requirements.

Tesla, Inc. (NASDAQ: TSLA) declined 16.4% during the Period and detracted 54 basis points from Index performance. The shares came under pressure following the company’s second-quarter earnings report, as record second-quarter vehicle deliveries and stronger-than-expected revenue were offset by weaker profitability. Adjusted earnings per share fell short of consensus expectations, gross margins declined, and operating expenses increased as Tesla continued to invest heavily in AI infrastructure and other development initiatives. Free cash flow was negative during the quarter, reinforcing investor concerns around the near-term earnings impact of the company’s elevated investment program. The stock recovered partially from its post-earnings lows but remained down by the end of the Period.

Bottom BUZZ Index Contributors: July 9, 2026 – August 13, 2026

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 2026 Rebalance Highlights

Situational Awareness

Since June, many of the major components of the AI trade have experienced a meaningful pullback. The decline began across memory, energy, and hyperscaler stocks before spreading more broadly through the latter half of July. The selloff culminated on July 29, when it was revealed that Leopold Aschenbrenner’s Situational Awareness hedge fund was facing a margin call and had been forced to liquidate a significant portion of its holdings. Aschenbrenner had been one of the earliest and most vocal advocates for the broader AI ecosystem trade. Strong performance through much of the year reportedly propelled the fund’s AUM to approximately $45 billion. The scale of leverage underlying the portfolio became apparent only during the selloff, with the fund carrying exposure approaching four times its capital, according to Bloomberg. On July 30, Citadel Securities purchased Situational Awareness’s approximately $16 billion portfolio of publicly traded equities as the fund was forced to liquidate. Once the forced selling was removed, many of the affected stocks rebounded sharply, and the Nasdaq 100 Index has rallied approximately 10% since. The magnitude of the unwind, along with the speed of the subsequent recovery, generated a surge in discussion across online platforms as investors debated both the fund’s collapse and its implications for the AI trade. This month, conversation across names in the BUZZ Universe increased approximately 38% compared to July, while overall sentiment toward AI-related stocks also increased materially.

Lumentum Holdings Inc.

Following the significant appreciation in memory stocks, some investors have begun looking for other areas of the AI ecosystem that may not yet be as widely recognized. The principal beneficiaries, including semiconductors, hyperscalers, alternative energy producers, and cloud infrastructure companies, are now well established. More recently, investor attention appears to be extending further into the AI hardware stack, including the individual technologies and components required to support the continued buildout of AI infrastructure. One area attracting particular interest is photonics. As data centers become larger and more computationally intensive, optical technologies are increasingly being used to transmit data at higher speeds and over greater distances, reducing reliance on traditional copper-based connections. The growing interest in the theme was highlighted this month by the launch of the Roundhill Photonics & Optics ETF (NASDAQ: LYTE), which quickly attracted trading activity. Lumentum Holdings Inc. (NASDAQ: LITE), the ETF’s largest holding, has emerged as one of the more prominent names in the space. Although Lumentum’s shares have already appreciated significantly over the past year, the company makes its BUZZ Index debut this month as investors increasingly view photonics as a distinct component of the AI infrastructure trade. LITE enters the Index with a 0.26% 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.

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