Nasdaq Monthly Index Performance Commentary – September 2025

• The Nasdaq-100 Index® (NDX®) continued to set new all-time highs as it finished Q3 2025 higher by 8.8% and is now up by 17.5% YTD. This brings the 10-year average return through the first three quarters of the year to 15.4%.
• The start of the Fed easing cycle layering into accommodative financial conditions, coupled with economic resilience and solid earnings trends, continue to underpin risk assets.
• Performance across Nasdaq’s suite of indexes finished higher in September with 102 of the 123 indexes tracked in our report posting gains, and the average index was up 3.7%.

Chart of the Month

Executive Summary

As expected, the Federal Reserve cemented that it is more focused on its employment mandate given labor market weakness, superseding inflation dynamics. With its first rate cut since December 2024 out of the way, the debate now shifts to whether the Fed will ultimately catch-down to the markets pricing in a more aggressive rate cutting trajectory relative to FOMC forecasts. Both Fed funds futures and the FOMC are penciling in two more rate cuts in 2025. However, the differentiation is for 2026 as the markets are pricing between two and three cuts while the FOMC’s median “dot” showed just one in 2026. What is causing this divergence? The FOMC sees a pick-up in economic activity in 2026 (real GDP growth revised up to 1.8% from 1.6% as of June), a slight decline in the unemployment rate (4.4% from 4.5%), and a corresponding increase in inflation (Core PCE of 2.6% from 2.4%).

More broadly, though, we are likely at the beginning of a Fed easing cycle and accommodative monetary policy layers into what had already been easing financial conditions which help to underpin risk-taking. Coupled with a strong corporate earnings backdrop driven by the AI secular theme and the expected benefits from fiscal stimulus via the tax legislation, equities have continued to set new highs as investors will next pivot to Q3 earnings. While the moderation in job growth has been notable, the slowdown in U.S. economic activity has been manageable. This is driven by a broadly resilient and dynamic services economy, and stable consumption. It remains a delicate balancing act between the real and market economies. However, the top-down and bottom-up tailwinds generally remain in place for risk assets heading into the final quarter and, for investors, the opportunity set has broadened across asset classes, themes, and regions.

Nasdaq Indexes September 2025 Performance Recap

Among the 123 indexes tracked in this report, 102 finished September in positive territory, while 21 ended with negative returns. The best-performing index was the Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™), delivering a return of 21.7%.  The worst performance was from the KBW Financial Sector Dividend Yield™ Index (KDX™) which lost –5.8% for the month. The average return across all 123 indexes for the month was +3.7%.

Nasdaq Featured Indexes

Thirteen out of the fourteen Nasdaq Featured Indexes registered positive returns in September. The Nasdaq Innovators Completion Cap™ Index (NCX™) was the top performer again, registering a return of 10.8% while the Nasdaq-100 Low Volatility™ Index (NDXLV™) was the bottom performer in the group with a loss of –1.2%. As the second quarter earnings releases came to an end, the continued strong performance of mega cap stocks helped the Nasdaq-100 Index® (NDX®) as it was up 5.4%. The Nasdaq-100 Top 30™ Index (NDX30™) was up 5.1% and the Nasdaq-100 Mega™ Index (NDXMEGA™) climbed 7.0%. Overall, this group of indexes was up by an average of 4.9%.

Nasdaq Global Indexes

Performance across the Nasdaq Global Indexes suite was strong as all nine indexes in the group had positive returns for September. Large caps generally outperformed mid and small caps.  The Nasdaq Emerging Markets™ Index (NQEM™) was the best performer, rising 6.1% on hopes and realization of an interest rate cut. The Nasdaq US Mid Cap™ Index (NQUSM™) was the bottom performer of the group though it still had a positive return of 0.5%. The Nasdaq Global™ Index (NQGI™) had a return of 3.3% and the Nasdaq Developed Markets™ Index (NQDM™) rose 3.0%. Asia Pacific ex-Japan outperformed Europe as the Nasdaq ASPA Ex Japan™ Index (NQASPAXJP™) was up 5.1% vs 1.6% for the Nasdaq Europe™ Index (NQEU™).  The average return for this group of indexes was 3.1%.

Nasdaq Sector-Specific Indexes

Three out of the six indexes within Nasdaq’s sector-specific indexes were positive. The PHLX Gold/Silver™ Index (XAU™) continued its upward momentum on inflation concerns as it was the top performer, registering a return of 19.3%. Spot gold prices continued to set new highs as the trade-weighted USD index had its weakest YTD return through three quarters since 1986 in the aftermath of the Plaza Accord and the coordinated weakening of the USD. Gold had its strongest YTD returns through three quarters since the hyper-inflation era of 1979. The KBW Financial Sector Dividend Yield™ Index (KDX™) was the laggard in the group, losing -5.8% as high dividend yielding stocks generally sold off in September.

Nasdaq Thematic Indexes

Overall performance across the Nasdaq Thematic Tech lineup was positive with twenty-one out of the twenty-five indexes in the suite recording gains, averaging 4.1%. The best performing index in the group was the Nasdaq US Smart Semiconductor™ Index (NQSSSE™) with a return of 13.4%.  The PHLX Semiconductor™ Index (SOX™) was also a strong performer, gaining 12.4%. The Nasdaq CTA Global Digital Payments™ Index (WALLET™) was the worst performer, posting a loss of –5.3%. 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 8.7% and 7.0% respectively.

Ten out of the thirteen indexes in the Nasdaq Thematic Renewables and Energy Transition Materials suite posted gains this month, with an average return of 8.4%. The best performer in the group was the Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) which was up 21.7%. The strength across the Nasdaq Sprott complex was widespread with all six of the indexes in the report posting double digit gains. The ISE Clean Edge Global Water™ Index (GHHO™) was the worst performer in September with a loss of -1.1%.

The Nasdaq Crypto Index suite had an average gain of 2.1% with three out of the four indexes posting gains.  The Nasdaq Bitcoin Settlement Price™ Index (NQBTCS™) had the highest return of the group at 5.6% as Bitcoin continued to benefit from the aforementioned USD weakness. The Nasdaq Ether Settlement Price™ Index (NQETHS™) had the lowest return, down -4.3%.

Nasdaq Quantitative Indexes

Across the index suites comprising Nasdaq’s quantitative offerings, performance was mostly positive with 43 out of the 52 indexes seeing gains in September. The average return was 2.5%.

Nine out of the ten indexes in the Nasdaq Options & Other Quantitative suite saw gains with an average return of 4%, and ten out of the eleven Nasdaq Multifactor indexes were positive this month with an average return of 1%.

Within the Dorsey Wright momentum suite, the Dorsey Wright Healthcare Tech Leaders™ Index (DWHC™) was the best performer, gaining 10.9%.  The Dorsey Wright Consumer Staples Tech Leaders™ Index (DWCS™) was the worst performing index at -1.8%. Overall, fourteen out of the sixteen indexes in the suite were positive with an average gain of 3.8%.

Ten out of the fifteen indexes in the Nasdaq Dividend and Income suite posted gains this month, with an average return of 1.2%. The Nasdaq Technology Dividend™ Index (NQ96DIVUS™) was the top performer, posting a return of 7.5%. The worst performer in the group was the Nasdaq US High Equity Income™ Index (NQUSHEI™) which was down -2.5% 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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