In this article, we discuss the 10 best stocks for day trading along with the latest developments in the Fed September meeting and market outlook.

At the press conference held on September 18, Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to its dual mandate of achieving maximum employment and price stability. He noted that the U.S. economy has remained strong, with GDP increasing at a steady rate of 2.2% in the first half of the year, while inflation has significantly moderated.

While the labor market has softened somewhat, it continues to show strength, with the unemployment rate still relatively low at 4.2%. Inflationary pressures have reduced, although inflation remains slightly above the 2% target, as core PCE prices have risen by 2.7% over the past year.

In light of these developments, the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.

When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.

Expert Opinion on Current Economic Conditions

At a CNBC interview on September 23, Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower said that the market’s current state of confidence is driven by the belief that the Fed is successfully managing a soft landing and preparing for a cycle of rate cuts. She expects better-than-expected economic growth and earnings forecasts, despite the ongoing volatility in the market.

Link noted the strong recent data, which include improved retail sales, manufacturing, and housing permits, along with jobless claims at a four-month low. This backdrop supports earnings growth and any market weakness presents a buying opportunity, especially in sectors like technology, financials, and industrials.

When asked about her stock picks, Link highlighted Exxon, as she mentioned its low valuation, attractive forward earnings, and the recent acquisition of Pioneer. She expects this acquisition to drive significant production growth and sees multiple upcoming catalysts, such as an analyst meeting in December and new projects next year.

Although oil prices remain volatile due to geopolitical factors in the Middle East, Link downplayed the concerns about higher prices and said that the oil giant generates substantial profits even at lower oil prices. She said that the sector’s ability to return cash to shareholders through dividends and buybacks sees further upside in energy stocks despite the sector lagging recently.

With that, we look at the 10 Best Stocks For Day Trading.

Our Methodology

For this article, we identified over 35 stocks with a beta of over 2.5. Next, we narrowed the list to 10 stocks with the highest 5-year beta and average trading volume of over 10 million. The 10 best stocks for day trading are listed in ascending order of their beta. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 Best Stocks For Day Trading

10. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

5-year Beta (monthly): 2.71

Average Volume: 12,845,288

Number of Hedge Fund Holders: 31

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is making significant strides in the cruise industry as it operates a diverse portfolio that includes Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. With a modern fleet of 32 ships and approximately 66,500 berths, the company offers voyages to around 700 destinations worldwide.

It has ambitious growth plans, with 13 new ships scheduled for delivery by 2036, including five expected between 2025 and 2028. The expansion is a sign of the company’s confidence in the recovery and future potential of the cruise market. It takes it spot among the best stocks for day trading.

For the second quarter, the company generated a record total revenue of $2.4 billion, which marked an 8% increase from the same period in 2023,  and it was credited to a 4% increase in capacity. With a GAAP net income of $163.4 million and EPS of $0.35, Norwegian Cruise (NYSE:NCLH) is benefiting from a rebound in consumer demand.

Occupancy rates have also exceeded expectations, reaching 105.9% in the second quarter, and the company forecasts an average occupancy of 105.2% for the full year 2024. The strong performance highlights the growing appetite for cruise vacations, as evidenced by the surge in advanced ticket sales for 2025 sailings.

CEO Harry Sommer has emphasized the solid demand for cruises, which has been instrumental in achieving record results. As more travelers look to explore the world through cruising, the cruise operator is well-positioned to capture this interest. The recent introduction of Norwegian Luna, an innovative addition to the fleet unveiled on September 18, further improves the company’s appeal.

The vessel is designed to elevate the cruising experience and features modern amenities and accommodates around 3,550 guests. It is set to launch in April 2026 with voyages to popular Caribbean destinations.

With these strong financial results, growing occupancy rates, and the launch of new ships, Norwegian Cruise (NYSE:NCLH) is not just recovering from past challenges but seems to be moving toward a prosperous future.

In the second quarter, 31 hedge funds had stakes in Norwegian Cruise (NYSE:NCLH), with total positions worth $526.303 million. As of June 30, Citadel Investment Group has increased its stake in the company by 11998% to 6.9 million shares worth $130.491 million and is the most significant shareholder.

9. Palantir Technologies Inc. (NYSE:PLTR)

5-year Beta (monthly): 2.71

Average Volume: 56,665,380

Number of Hedge Fund Holders: 44

Palantir Technologies Inc. (NYSE:PLTR), founded in 2003, is a key player in the realm of big data analytics and integration. The company has developed strong software platforms that empower organizations to manage, secure, and integrate vast amounts of varying data. It is among our best stocks for day trading with a 5-year beta of 2.71.

Its two primary products, Palantir Gotham and Palantir Foundry cater to distinct markets. Gotham is tailored for defense and intelligence applications, while Foundry serves commercial enterprises seeking advanced data analytics. Palantir Foundry has garnered interest from hedge funds, banks, and other financial institutions, providing them with powerful tools for data analysis and decision-making.

A major advancement for Palantir (NYSE:PLTR) came with the launch of its Artificial Intelligence Platform (AIP) last year, which enables users to use their data swiftly and effectively, often turning initial concepts into operational use cases in a matter of hours. The capability is particularly appealing as businesses increasingly look for ways to harness data-driven insights.

In 2024, the company announced several key partnerships and contracts that highlight its expanding influence in data analytics and artificial intelligence. A significant contract awarded by Nebraska Medicine in September marks a step into the healthcare sector, with a focus on deploying AIP to improve operations within the organization.

Another noteworthy collaboration is its partnership with Microsoft, announced in August. The partnership aims to enhance the capabilities of the U.S. defense and intelligence sectors by integrating Palantir’s (NYSE:PLTR) data analytics and AI solutions with Microsoft’s cloud services. The collaboration allows government agencies to utilize AIP alongside Microsoft’s Azure OpenAI Service, creating a powerful toolkit for analyzing and acting on complex data sets.

On September 20, the company secured a five-year contract with the DEVCOM Army Research Laboratory to extend its Maven Smart System across all military branches. The initiative, valued at up to $229 million, emphasizes the importance of AI in modern military operations. The Maven tool, which serves as a critical connection between troops, sensors, and operational data, shows its ability to provide essential technology to support national security.

As Palantir (NYSE:PLTR) continues to innovate and expand its partnerships, the company is well-positioned to capitalize on the growing demand for data analytics solutions across various sectors. With its strong product offerings and strategic collaborations, it is not just meeting the current needs of its clients but is also shaping the future of data-driven decision-making.