Nasdaq Monthly Index Performance Commentary – December 2025

• The Nasdaq-100 Index^® (NDX^®) ended December 2025 slightly lower, down 0.7% but closed the year with a strong gain of 20.2% marking its third consecutive year of double digit returns.
• A less hawkish than expected Federal Reserve December meeting supported global equites into year end, with most asset classes delivering strong returns in 2025.
• Nasdaq’s suite of indexes ended December on a positive note, with 66 of 125 indexes tracked in our report posting gains and the average index rising 0.5%.

Chart of the Month

_{Source: Nasdaq}

Executive Summary

Despite a year of intense macro volatility, 2025 ended with solid returns across most asset classes globally—as shown by our Chart of the Month. While macro volatility is expected to persist, the positive case for U.S. risk assets over the next 6 to 12 months remains broadly intact. The main drivers include a solid corporate earnings backdrop, supported by a relatively resilient economy—albeit one with a weakening employment picture—fiscal stimulus in 2026, and ongoing deregulation. These dynamics are further supported by accommodative financial conditions and lower Fed rates.

As innovative leaders in the AI space, mega-cap technology companies - with robust earnings growth, cash flows, and strong balance sheets - are likely to remain core holdings in investor portfolios. However, given the concentration of the secular AI trend within this cohort of companies and its geographic focus in the U.S., investors will continue to search for appropriate diversifiers and portfolio ballasts.

Financial conditions and expectations for the Fed’s rate trajectory remain key drivers of the risk appetite. The Fed cut rates as expected in mid-December by another 25 basis points. Taken together - the FOMC statement, Chair Powell’s press conference, and a larger than expected asset purchase program of around $40 billion a month focused on short-dated government bonds to support market liquidity - the meeting tilted less hawkish than expected. This helped equities towards the end of December amid lighter trading volumes. Additionally, despite the U.S. government shutdown, a softer November CPI also helped reinforce the case for lower Fed rates.

Interestingly, Treasury 10-year yields have moved higher by around 45 basis points from mid-September 2024 when the Fed began cutting rates to a current level of 4.17%. This illustrates how the long-end of the yield curve is largely driven by market forces – such as growth and inflation expectations, term premia, and fiscal and economic policies – rather than Federal Reserve actions. In fact, this marks the first instance since the brief 1998 cycle where 10-year yields have moved higher during a Fed rate cutting cycle.

Nasdaq Indexes December 2025 Performance Recap

Among the 125 indexes tracked in this report, 66 finished December in positive territory, while 59 ended with negative returns. The best-performing index was the Nasdaq Sprott Junior Copper Miners™ Index (NSCOPJ™), delivering a return of 16.2%. The worst performance was from the Nasdaq CTA Global Video Games Software™ Index (PLAYR2™) which declined 6.5% for the month. The average return across all 125 indexes for the month was +0.5%.

Nasdaq Featured Indexes

Five out of the fourteen Nasdaq Featured Indexes registered positive returns in December. The Nasdaq-100 Dorsey Wright Momentum™ Index (NDXDWA™) was the top performer, registering a return of 4.0% while the Nasdaq-100 Mega™ Index (NDXMEGA™) was the bottom performer in the group with a loss of 3.1%. A late year sell-off drove the Nasdaq-100 Index^® (NDX^®) lower by 0.7%. The Nasdaq-100 Low Volatility™ Index (NDXLV™) was down 2.0% and the Nasdaq-100 Technology Sector™ Index (NDXT™)climbed 0.60%. Overall, this group of indexes was down by an average of 0.2%.

Nasdaq Global Indexes 

Performance across the Nasdaq Global Indexes was strong as seven out of the nine indexes in the group had positive returns for December. Developed international markets maintained their lead over the U.S. The strongest performance was in Europe with the Nasdaq Europe™ Index (NQEU™) rising 3.1%. The Nasdaq ASPA Ex-Japan™ Index (NQASPAXJP™) was also a strong performer, up 2.3%.  The Nasdaq Developed Markets™ Index (NQDM™) rose 3.1%. The bottom performers of the group were the Nasdaq US Large Cap™ Index (NQUSL™) and the Nasdaq US Small Cap™ Index (NQUSS™), each with a loss of 0.2%. The Nasdaq Global™ Index (NQGI™) had a return of 1.0%. The average return for this group of indexes was +1.3%.

Nasdaq Sector-Specific Indexes

Four out of the six indexes within Nasdaq’s sector-specific indexes were positive. The KBW Nasdaq Bank™ Index (BKX™) led the group with a return of 6.5% as banks continued to rally—driven by factors such as improved M&A activity, a resilient economy, a steeper yield curve, and a deregulatory backdrop. The PHLX Gold/Silver™ Index (XAU™) gained 5.5% in December and the index has gained 149.5% YTD—its largest annual gain on record going back to 1984. Gold and silver posted banner years as safe havens amidst increased macro volatility, as a hedge against a weaker USD, and on concerns around wider fiscal deficits and elevated government debt levels globally. The KBW Financial Sector Dividend Yield™ Index (KDX™) was the weakest performer, dropping 2.0%.

Nasdaq Thematic Indexes

Overall performance across the Nasdaq Thematic Tech lineup was negative with thirteen out of the twenty-five indexes in the suite recording gains though the average return was -0.7%. The best performing index in the group was the BVP Nasdaq Emerging Cloud™ Index (EMCLOUD™) with a return of 3.4%. The Nasdaq US Smart Semiconductor™ Index (NQSSSE™) was also a strong performer, gaining 3.2%. The Artificial Intelligence (AI) theme continued to be strong as the Nasdaq CTA Artificial Intelligence™ Index (NQINTEL™) and the Nasdaq Global AI and Big Data™ Index  (NYGBIG™) were up 2.3% and 2.2% respectively. The Nasdaq CTA Global Video Games Software™ Index (BEWELL™) was the worst performer, posting a loss of 6.5%.

Ten out of thirteen indexes in the Nasdaq Thematic Renewables and Energy Transition Materials suite posted gains this month, with an average return of 4.2%. The Nasdaq Sprott Junior Copper Miners™ Index (NSCOPJ™) led with a 16.2% surge, while the Nasdaq Sprott Nickel Miners™ Index (NSNIKL™) also posted a double-digit rise of 15.6%. The ISE Clean Edge Water™ Index (HHO™) was the worst performer, slipping 2.8% in December.

The Nasdaq Crypto suite posted an average decline of 4.4%, with all four indexes in negative territory. The Nasdaq Ether Settlement Price™ Index (NQETHS™) led the group with the smallest loss of 4.4% while the lowest returning index was the Nasdaq Crypto Settlement Price™ Index (NCIS™) down 5.3%.

Nasdaq Quantitative Indexes

Across the index suites comprising Nasdaq’s quantitative offerings, 27 out of the 52 indexes posted gains in December, averaging a 0.3% return.

Six out of the ten indexes in the Nasdaq Options & Other Quantitative suite saw gains with an average return of 1.1%, while eight out of the eleven Nasdaq Multifactor indexes were negative this month with an average return of -0.3%.

Within the Dorsey Wright momentum suite, the Dorsey Wright Consumer Cyclicals Tech Leaders™ Index (DWCC™) was the best performer again, up 5.1%. The Dorsey Wright Healthcare Tech Leaders™ Index (DWHC™) was the weakest, down 5.6%. Overall, nine of the sixteen indexes in the suite were positive with an average loss of 0.1%.

Nine out of the fifteen indexes in the Nasdaq Dividend and Income suite posted gains this month, with an average return of 0.6%. The Nasdaq International BuyBack Achievers™ Index (DRBXUS™) topped the group with a 4.0% gain. The worst performer in the group was the Nasdaq 7HANDLL™ Index (NQ7HANDLL™), which was down 1.8% for the month.

Disclaimer:

_{Nasdaq^® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.}

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