VanEck
April 23, 2025
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BUZZ Investing: Tariff Chaos Shakes U.S. Equities>

During the recent period between index selection dates (March 13, 2025 – April 10, 2025, the “Period”), U.S. equity markets experienced severe volatility as escalating trade tensions drove a sharp repricing of risk assets. The S&P 500 fell approximately 4.5%, while the Nasdaq Composite dropped 5.2%, reflecting mounting investor anxiety following President Trump’s April 2nd “Liberation Day” announcement. The policy, enacted under emergency economic powers, imposed a 10% tariff on nearly all U.S. imports and sharply higher “reciprocal” tariffs on over 60 countries—ranging from 24% on Japan to an eventual 145% on China. The sweeping nature of the tariffs, coupled with fears of retaliatory action and supply chain disruption, triggered a historic selloff. The S&P 500 posted its fifth biggest two-day decline in the index since 1950 on April 3rd and 4th, declining 4.9% and 6.0% respectively, while the Nasdaq entered bear market territory. The VIX surged above 50—its highest level since the 2020 pandemic—amid a flight from risk assets and growing warnings from corporate leaders and global trade bodies about the economic consequences.

Yet just as panic peaked, markets staged a dramatic turnaround. On April 9th, Trump unexpectedly paused the implementation of most tariffs for 90 days—excluding those targeting China—and lowered rates on several key trade partners, citing “constructive dialogue” and market feedback. The move sparked a record-breaking relief rally: the S&P 500 surged 9.5%, its third-largest single-day gain since 1940, and the Nasdaq jumped 12.2%, as investors rushed back into beaten-down names. While the rebound recaptured a portion of earlier losses, the broader tone remained cautious. Earnings guidance from multinationals flagged continued supply disruptions, and sticky inflation in services kept the Fed on hold at its March meeting. With geopolitical headlines driving sharp market swings and election rhetoric heating up, the Period underscored the market’s sensitivity to policy risk—and the speed at which sentiment can shift.

The BUZZ NextGen AI US Sentiment Leaders Index ("BUZZ Index") returned -9.07% during the month of March compared to a return of -5.63% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index lags the S&P 500 with returns of -10.13% and -4.27%, respectively, as of the end of March.

Shares of Celsius Holdings pace BUZZ Index Gains

Shares of Celsius Holdings (NASDAQ: CELH) extended their momentum and led gains in the BUZZ Index for a second consecutive Period, as investors appeared to respond positively to a series of strategic developments. The completion of the company’s $1.8 billion acquisition of Alani Nutrition on April 1, which includes $150 million in tax assets and potential cost synergies of $50 million over two years, may have reinforced optimism around Celsius’ efforts to broaden its health-focused product portfolio and appeal to new consumer demographics. The appointment of former PepsiCo executive Eric Hanson as President and COO in late March was also viewed by some analysts as a signal of the company’s intent to accelerate global expansion, supported by new distribution partnerships in Europe. Taken together, these developments contributed to renewed enthusiasm around Celsius’ long-term growth strategy, helping the stock outperform broader markets despite ongoing concerns about the consumer discretionary backdrop.

Top BUZZ Index Contributors: March 13, 2025 – April 10, 2025

Company Ticker Average Weight (%) Return Contribution (%)
Celsius Holdings Inc CELH 3.40 0.86
GameStop Corp GME 3.15 0.44
Lucid Group Inc LCID 1.98 0.35
Palantir Technologies Inc PLTR 3.02 0.28
Rocket Lab USA Inc RKLB 2.56 0.27
IonQ Inc IONQ 1.05 0.20
UnitedHealth Group Inc UNH 0.83 0.18
Carvana Co CVNA 1.06 0.18
Netflix Inc NFLX 0.93 0.11
Tesla Inc TSLA 2.99 0.10

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 Intel Corp among declining stocks in the BUZZ Index

During the recent Period, Shares of Intel Corporation (NASDAQ: INTC) led declining stocks in the BUZZ Index, as investors reacted to a combination of geopolitical shocks and company-specific headwinds. The drop was catalyzed by heightened trade tensions following President Trump’s “Liberation Day” tariffs on April 2, which included a 10% baseline tariff on imports and sharply higher rates on countries such as China—where Intel derives over $15 billion in annual revenue. China’s retaliatory 34% tariffs on U.S. goods amplified concerns about global supply chain disruptions and margin compression across the semiconductor sector. Beyond macro pressures, ongoing losses in Intel’s foundry business and uncertainty surrounding its competitive positioning in the AI chip space have continued to weigh on the stock.

Bottom BUZZ Index Contributors: March 13, 2025 – April 10, 2025

Company Ticker Average Weight (%) Return Contribution (%)
Intel Corp INTC 3.02 -0.48
Hims & Hers Health Inc HIMS 2.73 -0.45
NIKE Inc NKE 1.26 -0.37
Super Micro Computer Inc SMCI 2.89 -0.35
AST SpaceMobile Inc ASTS 2.85 -0.34
Apple Inc AAPL 2.98 -0.29
Advanced Micro Devices Inc AMD 3.04 -0.29
Robinhood Markets Inc HOOD 2.54 -0.25
SoFi Technologies Inc SOFI 2.97 -0.25
Grab Holdings Ltd GRAB 1.47 -0.24

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 April 2025 Rebalance Highlights

NIKE, Inc.

It has been a challenging four years for shares of Nike (NYSE: NKE). Since peaking near $180 in late 2021, the stock has declined by more than 70%, a stunning reversal for a company long regarded as a dominant force in the sports apparel industry. Once synonymous with innovation, Nike has seen its product momentum stall, ceding market share to emerging brands like On and Hoka. Execution missteps ultimately led to the departure of CEO John Donahoe, as the company struggled to adapt to shifting consumer preferences and competitive pressures. More recently, escalating tariff threats under President Trump have introduced a fresh layer of uncertainty. With much of Nike’s manufacturing base located in Asia, the potential for increased import costs poses a significant risk to margins. Despite these headwinds, sentiment appears to be stabilizing, with investors betting that the worst may be priced in. A resolution on the trade front could provide a much-needed catalyst, and the recent increase in Nike’s weight in the BUZZ Index to the maximum 3% level may reflect a resurgence in buy-the-dip optimism.

Dollar General Corporation

Amid ongoing tariff uncertainty, the consumer staples sector has shown resilience relative to other retail segments. Anticipated price increases because of tariff policies have made consumers more cost-conscious, shifting spending toward essential goods. Discount retailers like Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR) may be well-positioned to benefit from this trend. Dollar General’s limited exposure to tariffs because of its predominantly domestic supply chain has boosted its popularity amongst investors. While the S&P 500 has fallen 4.5% during the recent Period, shares of DG have surged nearly 10%, and investor sentiment has been on the rise. This month, Dollar General is a new addition to the BUZZ Index with a 0.92% weight.

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