Nasdaq Index Performance: February 2023
The tech-heavy Nasdaq-100® (NDX®) registered a decline in February, losing 0.5%, after starting the year on a strong note. Overall, the indexes returned -1.9% on average, with 23 of the total 100 indexes finishing in positive territory with an average return of 1.4%. The best-performing index over the last month across all the indexes that we track was the OMX Copenhagen 25TM (OMXC25TM), up 4.8%, while the worst-performing index was PHLX Gold/Silver Sector IndexTM (XAUTM), posting a loss of 14.8%.
Featured Indexes Performance
Within the Nasdaq Featured Index lineup, the Nasdaq-100 Technology SectorTM (NDXTTM) outperformed its peers with a gain of 1.7%. With a loss of 14.8% for the month, the PHLX Gold/Silver Sector IndexTM (XAUTM) was the worst-performing index for the month. On average, the Nasdaq Featured Indexes lost 3.6% in February.
Global Indexes Performance
All indexes in the Nasdaq Global lineup moved lower in February with an average loss of 3.2%, a strong reversal from the previous month where all indexes registered positive returns. Within the suite of Nasdaq Global Indexes, emerging markets underperformed the rest of the indexes. Nasdaq ASPA Ex JapanTM (NQASPAXJTM) declined 6.5%, and was the worst-performing index for the month in the Nasdaq Global lineup. Nasdaq EuropeTM (NQEUTM) declined 0.7% for the month, and was the relative outperformer in the suite of Global Indexes. Within the United States, we saw Nasdaq US Large CapTM (NQUSL), Nasdaq US Mid CapTM (NQUSM), Nasdaq US Small CapTM (NQUSSTM) register declines that were relatively more muted, in the range of 2%-3%.
The Nordic Indexes bucked the overall trend, registering gains across the board. The OMX Copenhagen 25TM (OMXC25TM) Index was the best-performing index within the group, registering a gain of 4.8%, while OMX Stockholm 30TM (OMXS30TM) was the relative underperformer within the group, registering a modest gain of 1.3%.
Tech Suite Indexes Performance
The Nasdaq Thematic/Tech Indexes finished largely in the red with an average loss of 2.1%. 21 out of 27 indexes finished the month with losses. This was a strong reversal from the previous month where all indexes finished the month with gains. The Nasdaq CTA Cybersecurity IndexTM (NQCYBRTM) was the relative outperformer, posting gains of 2.2% while the Nasdaq CTA Global Video Games & ESports IndexTM (PLAYERTM) was the relative underperformer, registering declines of 7.6%.
Dorsey Wright Indexes Performance
The suite of relative strength-driven Nasdaq Dorsey Wright Indexes moved mostly lower, except for Dorsey Wright Industrial Tech LeadersTM (DWIDXTM) and Dorsey Wright Technology Tech LeadersTM (DWUTTM), which gained 2.7% and 1.7%, respectively. The Dorsey Wright Energy Tech LeadersTM (DWENTM) and the Dorsey Wright Healthcare Tech LeadersTM (DWHCTM) were the relative underperformers, losing 6.9% and 6.6% respectively.
Dividend & Income Indexes Performance
February’s market decline extended to the suite of Nasdaq Dividend and Income Indexes, which registered an average loss of 3.2%, a strong reversal from the previous month, where the suite registered an average gain of 5.8%. The Nasdaq 7HANDLTM Index (NQ7HANDLLTM) and Nasdaq International Dividend Achievers IndexTM (DATTM) were the relative underperformers, registering losses of 4.2% and 4.0%, respectively. The Nasdaq Select Canadian Dividend IndexTM (NQCADIVTM) and Nasdaq Select Canadian Preferred Share IndexTM (NQCAPFDTM) were the relative outperformers, registering losses of 2.3% and 1.5%, respectively.
The Nasdaq Options Suite ended February with an average loss of 1.2%. The Nasdaq-100 Quarterly Collar 95-100TM (NQCLRITM) was the relative outperformer, registering a modest gain of 0.6%, while the Credit Suisse Nasdaq Gold FLOWS103 IndexTM (QGLDITRTM) was the relative underperformer, with a return of -3.7%.
Green Economy Indexes Performance
In line with the overall trend, the Nasdaq Green Economy Indexes ended February with an average loss of 2.0%, a strong reversal from the previous month where the indexes posted an average gain of 7.0%. The worst-performing index was the Nasdaq OMX WindTM (GRNWINDTM) with an average loss of 2.9% while the best-performing index was the Nasdaq OMX Green EconomyTM (QGREENTM) with an average gain of 0.3%.
Other Assets Indexes Performance
Losses across the Nasdaq BulletShares Indexes were relatively more muted when compared to other indexes, with an average loss of a 0.4%. This was a reversal from the previous month where the suite of indexes generated an average gain of 1.1%. Three indexes (BS Corporate Bond 2022 TR IndexTM (BSCBM), BS Emerging Markets 2022 TR IndexTM (BSEMMTM) and the BS High Yield Corporate Bond 2022 TR IndexTM (BSJKMTM)) remained flat over the month, and were the relative outperformers. The BS Corporate Bond 2026 TR IndexTM (BSCBQTM) registered a loss of 1.6%, and was the relative underperformer.
Finally, all three of the Nasdaq Crypto Indexes eked out modest gains for the month of February with an average gain of 1.1%, a significant downtrend from the previous month where it registered gains of 37.4%. The Nasdaq Ethereum IndexTM (NQETHSTM) registered a gain of 1.9%, and was the relative outperformer, while Nasdaq Crypto IndexTM (NCISTM) and Nasdaq Bitcoin IndexTM (NQBTCSTM) followed closely with gains of 0.9% and 0.5%, respectively.
February Index Performance Summary
Stocks sold off in February after the Federal Reserve’s preferred inflation gauge came in stronger than expected, sparking worries that the Federal Reserve will have to keep rates higher for longer to quell inflation. Investors had welcomed a broad rally in January after a challenging 2022. The rally appears to have been short-lived, however, as investors now factor in additional pressures on inflation from a strong labor market. While some pundits point to the possibility of a ‘no landing’ scenario, the markets appear to be bracing for ‘higher for longer’ interest rates from the Federal Reserve. As for the trajectory of markets going forward, it remains to be seen if markets are poised for a ‘buy the dip’ rally in February and March, or if we are entering a new phase of the bear market that was started a year ago. We are unlikely to test new lows as a lot of the pain appears to have been priced in. On a rolling one-year price return basis, the Nasdaq-100 is down -15.42%.
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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Nasdaq Index Research Team
Nasdaq
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