I was wrong about Trump (From Porter & Company) Capitalize on Volatility: 3 Finance Stocks Thriving in 2025 Markets may hate uncertainty, but in 2025, they seem to love volatility. Despite cloudy and, at times, contradictory economic indicators, the NASDAQ and S&P 500 indices reached all-time highs to close out the second quarter. Should investors expect more of the same in the year's second half? There is likely to be more clarity about monetary and tariff policy. Analysts also expect companies to report solid earnings in the next quarter, particularly in the tech sector, where the AI trade continues to gain steam. However, this is also a good time to look beyond technology. Many finance stocks use volatility as a catalyst to drive profits higher. That volatility can take many forms, including surging trading volumes, widening credit spreads, or a spike in corporate financing. Here are three stocks well-positioned to capitalize on market volatility and could move significantly higher in the coming months. Nearly $600 billion is projected to be spent on AI data centers this year. That's because the ones being built now will dwarf everything that came before them. Thanks to AI's ravenous hunger for power … They are beginning to morph into sprawling behemoths. Click here to learn more about the #1 AI Energy Stock of 2025 CME Group Is Profiting From Record Derivatives Trading The CME Group Inc. (NASDAQ: CME) operates the world’s largest derivatives marketplace. It enables speculative investors to buy and sell futures and options contracts tied to interest rates, commodities, and other financial instruments. Traders flock to these volatile investments in volatile markets to manage risk or benefit from a more speculative environment. This type of activity is likely to increase as expectations grow for at least one interest rate cut. That’s been reflected in CME stock,which has been up more than 40% in the last 12 months and over 18% in 2025. After hitting an all-time high in May, the stock has pulled back. However, after forming a higher low in June, it’s showing signs of recovering to new highs. A move higher is supported by the MACD line, which recently made a bullish crossover after a sustained negative move. Another catalyst could be a neutral RSI reading that suggests the stock has room for more upside. Goldman Sachs Is a Volatility-Driven Revenue Machine The Goldman Sachs Group Inc. (NYSE: GS) is one of the world’s leading global investment banking, securities, and investment management firms with one of the largest trading operations. Volatile markets allow Goldman to generate more revenue as bid-ask spreads expand and trading activity increases across equities, credit, and currencies. Another bullish catalyst for Goldman Sachs during market turbulence is increased M&A transactions and urgent capital raises, which enable Goldman to earn substantial advisory and underwriting fees. Goldman’s strong balance sheet also allows it to deploy its funds into dislocated markets, buy distressed assets or step in as a liquidity provider when competitors pull back, reinforcing its competitive advantage during uncertainty. GS stock is up 23.8% in 2025, just below its 52-week high set in June. The stock has bullish momentum, but the RSI indicates it may be ready for a short-term pullback or consolidation before moving higher. FREE Report: 4 “America First” Stocks Poised to Soar Under Trump’s New Tariffs President Trump’s second term is officially underway—and during his first 100 days are already delivering bold moves on tariffs, energy, defense, and trade. Click here to get your free report, 4 “America First” Stocks That Could Soar Under Trump’s New Tarif MarketAxess Is Riding the Wave of Credit Market Volatility MarketAxess Holdings Inc. (NASDAQ: MKTX) operates the leading electronic trading platform for corporate bonds. Due to higher institutional trading volumes, the company tends to outperform when credit spreads widen. Therefore, MarketAxess's bull case is that a resurgence in credit market volatility is likely to drive more corporate bond trading, which will, in turn, increase the company’s transaction fee revenue. MKTX stock is down 1.5% in 2025 but up 3.1% in the last 3 months. That could be a sign that the stock is getting ready to break out of the consolidation phase it’s been in since March. The MarketAxess Holdings analyst forecast on MarketBeat gives the stock a consensus price target of $241.78, an 8.4% gain. That corresponds with an anticipated 11% gain in earnings over the next 12 months. MarketAxess reports earnings on August 5. A solid report could trigger a move higher. At that point, a decisive breakout above resistance near $250–$260 could attract momentum investors, reinforce bullish sentiment and pave the way for sustained upside if fundamentals continue improving. Written by Chris Markoch Read this article online › Read More: Dan Ives’ Bold $5 Trillion Forecast for Microsoft Stock Here's the last trade you should make before heading out for the weekend tomorrow. (From Timothy Sykes) 3 Stocks With Near-Unanimous Buys That Could Rally Higher Elon just did WHAT!? (From Brownstone Research) Why Realty Income’s 5.59% Yield Makes It a Must-Buy REIT Toast Stock: A Fast-Growing Mid-Cap Eyeing Further Upside Breakout Alert: Disney Stock Hits Multi-Year High Did you like this article? |