Nasdaq Monthly Index Performance Commentary – February 2026

• The Nasdaq-100 Index^® (NDX^®) ended February 2026 lower by 2.3%.
• Despite losing ground in February, NDX companies continued to significantly outperform expectations when delivering their quarterly earnings results with overall YoY EPS growth coming in at 17.2% vs. the 12.5% consensus forecast, making it the 11^th quarter in a row of 15%+ YoY earnings growth for the index.
• Amidst encouraging Q4 2025 earnings results, the U.S. Supreme Court’s trade tariff ruling and AI-led market disruptions became the key stories last month.
• Nasdaq’s suite of indexes ended February with 79 of 124 indexes tracked in our report posting gains and the average index rising 0.9%.

Chart of the Month

Executive Summary

The attacks on Iran on February 28^th are clearly top of mind for financial markets. As we watch the price action unfold across equity, currency, commodity, and bond markets, we will note that it has been rare for U.S. equities to be lower six months after the beginning of a major U.S. military action going back to World War II (Source: Strategas). Eventually, the markets and investors turn back to the fundamentals.

Analysts surveyed believe there could be a moderate uptick in U.S. economic activity in 2026. The near-term risk for investors may be to the upside as a number of key economic indicators posted positive surprises in mid-February. Furthermore, the Trump administration’s “affordability agenda” ahead of the midterms and an expected dovish bias from the Federal Reserve Chair nominee, Kevin Warsh, offer reasons to be bullish on both fiscal and monetary fronts. With that being said, narratives are liable to shift again with downward revisions to the labor data, a lack of fiscal impulse from Washington, or a more hawkish Fed.

Other than the Iran strikes, the most important macro development last month was the February 20^th ruling by the Supreme Court which overturned the IEEPA-based U.S. trade tariffs. Immediately following the ruling, the President signed a flat 10% tariff on all imports under Section 122 of the Trade Act of 1974 providing time-limited authority. In this scenario, the average effective tariff rate would fall from 16% to 13.7% for the 150 days permitted under Section 122. However, following this 150-day period, the overall average effective tariff rate is set to fall even further to 9.1% (per The Budget Lab at Yale). While the dust needs to settle in terms of the Trump administration’s next steps, at a minimum, the overall average effective tax rate is slated to be lower for U.S. consumer and businesses.

From a financial markets perspective, the dominant theme continues to be the ramifications of the AI boom. The upside narrative has largely moved on from the hyperscalers and semiconductor manufacturers to other parts of the ecosystem – those involved in data center construction, i.e.: energy and construction, semiconductor capital equipment, and memory and storage. These reflect some of the physical world constraints that need to be addressed for large-scale AI implementation. At the other end of the spectrum, the market continues to price in digital disruption via the ongoing “SaaS-pocalypse.” While February saw a continuation of violent intra-sector tech rotations piled on top of spreading fear of AI disrupting other business models as well (e.g., financial and business services), our Chart of the Month speaks to the differentiation of performance across the tech stack.

95 out of the 100 companies in the Nasdaq-100 Index® (NDX®) have reported their earnings for the fourth quarter of 2025 through February 27, 2026.  71 companies representing 84% of the reported weight reported earnings that exceeded analyst earnings estimates.  80 companies representing 94% of the reported weight reported revenues that exceeded analyst estimates. 

Source: Nasdaq, Factset, data as of February 27, 2026

Nasdaq Indexes February 2026 Performance Recap

Among the 124 indexes tracked in this report, 79 finished February in positive territory, while 45 ended with negative returns. The best-performing index was the Nasdaq Sprott Junior Silver Miners™ Index (NMFSM™), delivering a return of 25.4%. The worst performance was from the Nasdaq Ether Settlement Price™ Index (NQETHS™) which declined 28.2% for the month. The average return across all 124 indexes for the month was 0.9%.

Nasdaq Featured Indexes

Six out of the fourteen Nasdaq Featured Indexes registered positive returns in February. The Nasdaq-100 Ex-Tech Sector™ Index (NDXX™) was the top performer, registering a return of 3.7% while the Nasdaq-100 Mega™ Index (NDXMEGA™) was the bottom performer in the group with a loss of 6.2%. The Nasdaq-100 Index^® (NDX^®) posted a return of -2.3% on weakness in technology stocks (particularly mega cap and software companies). Notably, the Nasdaq-100 Low Volatility™ Index (NDXLV™) was up 3.7% and the Nasdaq-100 Equal Weighted™ Index (NDXE™)climbed 0.1%, beating NDX by 2.2%. Overall, this group of indexes was down by an average of 0.9%.

Nasdaq Global Indexes 

Performance across the Nasdaq Global Indexes was strong as eight of the nine indexes in the group had positive returns for February. Developed international markets maintained their lead over the U.S. The strongest performance was in the Nasdaq Developed Markets Ex United States™ Index (NQDMXUS™) which rose 5.9%.  Asia Pacific ex-Japan was also a strong performer with the Nasdaq ASPA Ex-Japan™ Index (NQASPAXJP™) up 5.8%.  Europe was positive with the Nasdaq Europe™ Index (NQEU™) rising 2.9%. The Nasdaq Developed Markets™ Index (NQDM™) rose 1.5%. The bottom performer of the group was the Nasdaq US Large Cap™ Index (NQUSL™) which was down 1.4%.  The Nasdaq US Small Cap™ Index (NQUSS™) was up 1.3%. The Nasdaq Emerging Markets™ Index (NQEM™) was up 2.9%. The Nasdaq Global™ Index (NQGI™) had a return of 1.6%. The average return for this group of indexes was +2.6%.

Nasdaq Sector-Specific Indexes

Three out of the six indexes within Nasdaq’s sector-specific indexes were positive. The top performer was the PHLX Gold/Silver™ Index (XAU™) which gained 23% in February as gold and silver rallied in the second half of the month on a safe-haven bid given the rise in geopolitical tensions ahead of the attacks on Iran at the end of the month. The KBW Financial Sector Dividend Yield™ Index (KDX™) was the bottom performer losing 5.7% on widespread weakness in financial companies amidst private credit concerns. The average return for the group was 2.4%.

Nasdaq Thematic Indexes

Overall performance across the Nasdaq Thematic Tech lineup was generally negative with nineteen out of the twenty-five indexes in the suite recording losses with an average loss of 3.4%. The Nasdaq CTA Global Climate Technology™ Index (CLMTCH™) was the best performer in the group rising 6.2%. The BVP Nasdaq Emerging Cloud™ Index (EMCLOUD™) was the worst performer, posting a loss of 9.5%. Semiconductor companies continue to be the beneficiaries of AI related capital expenditures.  By contrast, software companies including cloud and cybersecurity companies are increasingly facing competition from AI products that threaten to make software as a service (SaaS) more commoditized. The schism between software and hardware was on full display as the Nasdaq US Smart Semiconductor™ Index (NQSSSE™) gained 2.4% and the PHLX Semiconductor™ Index (SOX™) was up by 1.2%. Software related companies were among the hardest hit across a spectrum of themes including cybersecurity where the Nasdaq CTA Cybersecurity™ Index (NQCYBR™) lost 9% and video games with Nasdaq CTA Global Video Games and ESports™ Index (PLAYER™) which lost 8.7% for the month.

Thirteen of the fifteen indexes in the Nasdaq Thematic Renewables and Energy Transition Materials suite posted gains this month, with an average return of 6.5%. The Nasdaq Junior Silver Miners™ Index (NMFSM™) led all indexes in the group with a 25.4% surge.   Electric grid modernization was a strong performer as the Nasdaq Global Electrification and Smart Grid™ Index (NQGETS™) posted a double-digit rise of 10.8% and the Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGRD™) was up 7.8%. The Nasdaq Sprott Energy Transition Materials Select™ Index (METAL™) gained 15.2%.  The lowest performer was the Nasdaq Junior Uranium Miners™ Index (NSURNJ™)with a loss of 4.9% in February.

The Nasdaq Crypto suite posted an average decline of 23.9%, with all four indexes in negative territory. The Nasdaq Bitcoin Settlement Price™ Index (NQBTCS™) led the group with the smallest loss of 21.7% while the lowest returning index was the Nasdaq Ether Settlement Price™ Index (NQETHS™) down 28.2%.

Nasdaq Quantitative Indexes

Across the index suites comprising Nasdaq’s quantitative offerings, 43 out of the 51 indexes posted gains in February, averaging a 3.3% return.

Four out of the nine indexes in the Nasdaq Options & Other Quantitative suite saw gains with an average return of 1.8%, and all eleven Nasdaq Multifactor indexes were positive this month with an average return of 3.1%.

Within the Dorsey Wright momentum suite, the Dorsey Wright Emerging Markets Tech Leaders™ Index (DWAEM™) was the best performer, up 9.1%. The Dorsey Wright Financials Tech Leaders™ Index (DWFN™) was the worst performer, down 5.4%. Overall, fourteen of the sixteen indexes in the suite were positive with an average gain of 4.7%.

Fourteen of the fifteen indexes in the Nasdaq Dividend and Income suite posted gains this month, with an average return of 2.9%. The Nasdaq Select Canadian Dividend™ Index (NQCADIV™) topped the group with a 7.5% gain. The worst performer in the group was the Nasdaq Technology Dividend™ Index (NQ96DIVUS™) which was down 0.1% 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.

© 2026. Nasdaq, Inc. All Rights Reserved.