BUZZ Investing: Fed’s Glimmer of Hope Amid Market Corrections>

During the recent period between index selection dates (February 12, 2025 – March 13, 2025, the “Period”), U.S. stock markets faced a steep decline, with the S&P 500 falling 8.6% and the Nasdaq Composite dropping 11.9%, signaling a shift from the turbulence of February into a more pronounced downturn. The escalation came as the Trump administration’s tariff policies began to take shape, targeting major trading partners like Canada, Mexico, and China, unsettling investors with the prospect of higher costs, supply chain strains, and retaliatory trade measures. At the same time, economic indicators painted a gloomier picture, with softening job growth, rising unemployment, and persistent concerns about consumer spending amplifying fears of a slowdown. The tech sector, a key driver of earlier gains, took a significant hit as investor sentiment soured, particularly around high-profile names tied to AI and electric vehicles, where weakening demand and regulatory pressures added to the woes. Amid this uncertainty, a flight to safety boosted demand for U.S. government bonds, pushing Treasury yields lower as equities struggled to regain traction.

The broader market mood during this period was shaped by a mix of policy uncertainty and macroeconomic challenges, overshadowing fleeting moments of relief. While a slightly lower-than-expected inflation reading offered a brief glimmer of hope for potential Federal Reserve rate adjustments, the overriding concerns about tariffs and economic health quickly erased any gains, with the Nasdaq hitting correction territory on March 6 and the S&P 500 entering correction territory, defined as a decline of more than 10% from its recent peak, on March 13. Defensive sectors, such as utilities and consumer staples, showed relative resilience as investors pivoted away from riskier assets amid the deepening sell-off. Corporate earnings reports further highlighted vulnerabilities, with consumer-facing companies signaling caution amid signs of weakening demand, contrasting with earlier optimism tied to technological innovation. Analysts adjusted their outlooks downward, reflecting a market increasingly weighed down by external pressures and a reassessment of the post-election rally, marking a stark departure from the buoyancy seen earlier in the year.

The BUZZ NextGen AI U.S. Sentiment Leaders Index ("BUZZ Index") returned -3.73% during the month of February compared to a return of -1.30% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index lags the S&P 500 with returns of -1.17% and 1.44%, respectively, as of the end of February.

Shares of Celsius Holdings Pace BUZZ Index Gains

Shares of Celsius Holdings (NASDAQ: CELH) emerged as standout in the BUZZ Index during the recent Period, climbing approximately 25%, fueled by a combination of strong quarterly results and a strategic acquisition. The energy drink maker reported earnings and sales that surpassed Wall Street forecasts, boosting investor confidence at a time when the stock had been under pressure from slowing growth and distribution challenges. The announcement of its $1.8 billion acquisition of Alani Nu, a fast-growing rival with a strong social-media-driven following, further energized the stock, potentially positioning Celsius to bolster its market share and tap into new consumer segments. This surge may reflect renewed optimism about the company’s ability to navigate a competitive landscape and reignite its growth trajectory despite broader concerns about consumer spending and intensifying rivalry in the energy drink sector.

During the recent period between index selection dates (February 12, 2025 – March 13, 2025, the “Period”), U.S. stock markets faced a steep decline, with the S&P 500 falling 8.6% and the Nasdaq Composite dropping 11.9%, signaling a shift from the turbulence of February into a more pronounced downturn. The escalation came as the Trump administration’s tariff policies began to take shape, targeting major trading partners like Canada, Mexico, and China, unsettling investors with the prospect of higher costs, supply chain strains, and retaliatory trade measures. At the same time, economic indicators painted a gloomier picture, with softening job growth, rising unemployment, and persistent concerns about consumer spending amplifying fears of a slowdown. The tech sector, a key driver of earlier gains, took a significant hit as investor sentiment soured, particularly around high-profile names tied to AI and electric vehicles, where weakening demand and regulatory pressures added to the woes. Amid this uncertainty, a flight to safety boosted demand for U.S. government bonds, pushing Treasury yields lower as equities struggled to regain traction.

The broader market mood during this period was shaped by a mix of policy uncertainty and macroeconomic challenges, overshadowing fleeting moments of relief. While a slightly lower-than-expected inflation reading offered a brief glimmer of hope for potential Federal Reserve rate adjustments, the overriding concerns about tariffs and economic health quickly erased any gains, with the Nasdaq hitting correction territory on March 6 and the S&P 500 entering correction territory, defined as a decline of more than 10% from its recent peak, on March 13. Defensive sectors, such as utilities and consumer staples, showed relative resilience as investors pivoted away from riskier assets amid the deepening sell-off. Corporate earnings reports further highlighted vulnerabilities, with consumer-facing companies signaling caution amid signs of weakening demand, contrasting with earlier optimism tied to technological innovation. Analysts adjusted their outlooks downward, reflecting a market increasingly weighed down by external pressures and a reassessment of the post-election rally, marking a stark departure from the buoyancy seen earlier in the year.

The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index") returned -3.73% during the month of February compared to a return of -1.30% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index lags the S&P 500 with returns of -1.17% and 1.44%, respectively, as of the end of February.

Shares of Celsius Holdings Pace BUZZ Index Gains

Shares of Celsius Holdings (NASDAQ: CELH) emerged as standout in the BUZZ Index during the recent Period, climbing approximately 25%, fueled by a combination of strong quarterly results and a strategic acquisition. The energy drink maker reported earnings and sales that surpassed Wall Street forecasts, boosting investor confidence at a time when the stock had been under pressure from slowing growth and distribution challenges. The announcement of its $1.8 billion acquisition of Alani Nu, a fast-growing rival with a strong social-media-driven following, further energized the stock, potentially positioning Celsius to bolster its market share and tap into new consumer segments. This surge may reflect renewed optimism about the company’s ability to navigate a competitive landscape and reignite its growth trajectory despite broader concerns about consumer spending and intensifying rivalry in the energy drink sector.

Top BUZZ Index Contributors: February 12, 2025 – March 13, 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.

Shares of Trump Media & Technology Among Declining Stocks in the BUZZ Index

During the recent period, shares of Palantir Technologies (NASDAQ: PLTR), Trump Media & Technology Group (NASDAQ: DJT), and Hims & Hers Health (NYSE: HIMS) saw substantial declines of 32.2%, 37.0%, and 31.9%, respectively, negatively impacting BUZZ Index performance amidst a broader market downturn fueled by tariff uncertainties and economic slowdown concerns. Palantir’s drop may have been influenced by worries over its heavy reliance on government contracts, which account for a significant portion of its revenue, as reports surfaced of potential Pentagon budget cuts under the Trump administration, alongside a lofty valuation that left little room for error. DJT faced turbulence as its stock, closely tied to political sentiment, wavered with shifting perceptions of the administration’s policy direction, compounded by skepticism about its long-term business viability after a volatile run. Hims & Hers Health stumbled as signs of softening consumer spending hit the telehealth and wellness sector, with additional pressure from competitive pricing moves by rivals eroding confidence in its growth prospects.

Bottom BUZZ Index Contributors: February 12, 2025 – March 13, 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 March 2025 Rebalance Highlights

Marvell Technology Inc.

The stock market has encountered broad selling pressure, with momentum stocks among those experiencing significant declines. The “Magnificent Seven” tech leaders have seen notable pullbacks since mid-February, potentially driven by concerns over looming tariffs, geopolitical uncertainties, and possible liquidations from large investors. Many of last year’s highflyers have slipped into correction territory and face further challenges reporting earnings in this difficult environment. Marvell Technology (NASDAQ: MRVL) may exemplify this trend, as the company reported earnings in early March that appeared to meet expectations, yet its stock still fell sharply, possibly reflecting broader worries about softening semiconductor demand in data centers and automotive sectors, alongside ongoing supply chain issues. Despite this, a “buy-the-dip” attitude seems to be gaining traction among some investors, and this month, MRVL has secured a 0.51% weighting in the BUZZ Index, suggesting cautious optimism may be present amidst the market’s challenges.

The Trade Desk, Inc.

The Trade Desk (NASDAQ: TTD) is the latest high-growth stock to come under pressure following a weaker-than-expected earnings report. In early February, the company’s Q4 revenue fell short of Wall Street estimates, largely due to a slower-than-anticipated rollout of its Kokai advertising platform. As a leader in digital marketing automation, The Trade Desk has seen substantial appreciation since its 2016 IPO, making this revenue miss a rare event—only the second in its history as a public company. Over the past month, TTD shares have faced considerable declines, driven not only by company-specific factors but also by broader market dynamics, as investors shift away from high-growth names and reassess valuations. However, signs of stabilization within the investor sentiment suggest that some may now view the pullback as a buying opportunity. Reflecting this, TTD re-enters the BUZZ Index this month with a 1.72% weighting.

To receive more Thematic Investing insights, sign up in our subscription center .

Continue reading