A series of economic and market developments shaped market activity during the recent period between index selection dates (November 14, 2024 – December 12, 2024, the “Period”). The U.S. Labor Department reported a robust addition of 227,000 jobs in November, above expectations, signaling continued strength in the labor market. However, a slight uptick in the unemployment rate to 4.2% reflected an expanding labor force. Inflation indicators showed persistent pressures, with the Consumer Price Index (CPI) rising 0.3% in November for an annual increase of 2.7% and the Producer Price Index (PPI) climbing 0.4% month-over-month, reaching 3.0% year-over-year. Despite this combination of strong labor market data and inflationary pressures, investors anticipated the 25-basis-point rate cut, reflecting confidence in the central bank’s commitment to sustaining growth amid evolving economic conditions.
The BUZZ NextGen AI US Sentiment Leaders Index (“BUZZ Index”) performed well during the Period, rising 11% and achieving a new all-time high on December 6. Broader market sentiment was bolstered by strong corporate earnings and optimism in growth sectors, with the Nasdaq Composite surpassing the 20,000 mark for the first time, driven by gains in major technology stocks such as Alphabet and Tesla. This confluence of robust economic indicators, earnings momentum, and monetary policy expectations contributed to a complex yet resilient market environment during the Period.
The BUZZ Index returned 16.70% during the month of November compared to a return of 5.87% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 36.00% and 28.07%, respectively, as of the end of November.
Shares of Super Micro Computer, Inc. pace BUZZ Index Gains
Super Micro Computer (NASDAQ: SMCI) stock price soared over 110% during the recent Period, driven by a series of positive developments that have eased investor concerns and restored confidence in the company. Following a tumultuous period marked by the resignation of its auditor, Ernst & Young, and the threat of delisting, the company announced on December 2 that Nasdaq would allow it to retain its listing while reviewing its compliance plan. This news, coupled with the appointment of BDO USA as its new auditor, has reassured markets. Additionally, an independent special committee concluded its investigation into governance issues raised by Ernst & Young, finding no evidence of fraud or misconduct. The company has adopted the committee’s recommendations, including plans to appoint a new CFO and strengthen compliance oversight, further signaling a commitment to resolving governance concerns. With its core business in AI-driven servers remaining strong, investor sentiment has shifted significantly.
Top BUZZ Index Contributors: November 14, 2024 – December 12, 2024
| Company | Ticker | Average Weight (%) | Return Contribution (%) |
| Super Micro Computer Inc | SMCI | 4.69 | 2.08 |
| MicroStrategy Inc | MSTR | 1.44 | 1.09 |
| Tesla Inc | TSLA | 3.34 | 1.07 |
| Palantir Technologies Inc | PLTR | 3.36 | 0.74 |
| SoFi Technologies Inc | SOFI | 3.53 | 0.73 |
| Unity Software Inc | U | 2.44 | 0.65 |
| Robinhood Markets Inc | HOOD | 3.11 | 0.63 |
| Boeing Co/The | BA | 2.87 | 0.60 |
| Rivian Automotive Inc | RIVN | 1.63 | 0.54 |
| Lucid Group Inc | LCID | 1.95 | 0.51 |
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 Semiconductor companies among declining stocks in the BUZZ Index
Intel Corporation (NASDAQ: INTC) has faced a nearly 20% decline in its stock price during the recent Period, driven by a series of developments that have shaken investor confidence. On December 2, CEO Pat Gelsinger unexpectedly retired, leaving uncertainty about the company’s strategic direction amid mounting competition in the semiconductor industry. This leadership transition was compounded by an S&P Global Ratings downgrade of Intel’s credit rating from ‘BBB+’ to ‘BBB,’ citing slower-than-expected recovery efforts and uncertainties stemming from the management change. Additionally, Intel announced plans to restructure its manufacturing division into a standalone subsidiary, with interim co-CEOs indicating that a full spinoff is under consideration. While intended to streamline operations, this move has added to market apprehension about Intel’s future.
NVIDIA Corp (NASDAQ: NVDA) and Advanced Micro Devices Inc (NASDAQ: AMD) fell approximately 6% during the Period. While Intel’s issues were company-specific, the declines in NVDA and AMD may have reflected broader market concerns over slowing chip demand in certain segments and profit-taking after a strong rally in AI and semiconductor stocks earlier in the year. These pressures suggest investors may be more cautious toward the sector, even as long-term growth opportunities in AI and advanced computing remain intact.
Bottom BUZZ Index Contributors: November 14, 2024 – December 12, 2024
| Company | Ticker | Average Weight (%) | Return Contribution (%) |
| AST SpaceMobile Inc | ASTS | 2.58 | -0.42 |
| Intel Corp | INTC | 2.25 | -0.42 |
| NVIDIA Corp | NVDA | 2.69 | -0.19 |
| Viking Therapeutics Inc | VKTX | 1.75 | -0.19 |
| Advanced Micro Devices Inc | AMD | 2.59 | -0.16 |
| Lumen Technologies Inc | LUMN | 0.40 | -0.13 |
| Uber Technologies Inc | UBER | 0.66 | -0.10 |
| NU Holdings Ltd/Cayman Islands | NU | 0.32 | -0.08 |
| Cava Group Inc | CAVA | 0.51 | -0.06 |
| Sirius XM Holdings Inc | SIRI | 0.47 | -0.04 |
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 December 2024 Rebalance Highlights
Zeta Global Holdings Corp.
This month, the BUZZ Index adds Zeta Global Holdings Corp. (NYSE: ZETA) as a first-time entrant. The company provides multi-channel marketing tools and software, leveraging data analytics, machine learning, and AI to help businesses better understand online trends. Over the past decade, Zeta has expanded its capabilities through strategic cloud computing and predictive analytics acquisitions. After going public in June 2021 with a $1.7 billion valuation, Zeta’s stock gained significant attention in 2024, climbing over 400% year-to-date by November amid growing interest in AI-driven solutions. However, on November 13, short-seller Culper Research published a report alleging financial irregularities, causing the stock to decline sharply by 50%. Zeta refuted the claims, and while its stock remains volatile, sentiment has recovered, suggesting continued investor confidence. Zeta Global debuts in the BUZZ Index this month with the maximum 3% weight.
UnitedHealth Group Inc
The killing of Brian Thompson, CEO of UnitedHealth Group (NYSE: UNH), on December 4th has drawn significant attention to the company and the broader U.S. private insurance industry. Thompson was fatally shot outside the hotel hosting UNH’s investor day, an event that unexpectedly brought public scrutiny to the company’s business practices rather than focusing condemnation on the crime itself. Social media platforms were flooded with criticism of UNH, with many users expressing frustration over its high claim denial rates and raising questions about longstanding issues within the private insurance sector. The incident has weighed on UNH’s stock, which has fallen over 15% since the shooting, as the company faces intensified public and regulatory scrutiny. Despite the controversy, sentiment toward the stock has begun to recover, as investors may view the event as unlikely to materially impact the company’s operational fundamentals. UnitedHealth Group joins the BUZZ Index this month as a new entrant with a 1.61% weight.
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Originally published 19 December 2024.
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