Nasdaq Index Performance: October 2023
The global financial markets continued to experience turbulence in October driven by geopolitical events in the Middle East, rising Treasury yields, and conflicting economic data. Out of the 107 indexes that this report tracks, only ten ended the month positively. The average return for all 107 indexes in October was -4.2%. Spurred by favorable regulatory news around a potential ETF launch, Nasdaq Bitcoin™ (NQBTCS™) had the best performance this month with a return of 28.1%. On the other hand, Nasdaq Clean Edge Green Energy™ (CELS™) was the lowest performing, suffering a loss of -21.3%.
In October 2023, the Nasdaq Featured Indexes had losses almost across the board with an average loss of -4.6%. The biggest underperformer was the Nasdaq Innovators Completion Cap™ (NCX™) which was down -13.7% this month. Notably, the PHLX Gold/Silver Sector™ (XAU™) was up 3.5% this month, trimming its trailing six-month loss down to -17.0%. Additionally, the Nasdaq-100 Technology Sector™ (NDXT™) and Nasdaq Composite® (COMP™) posted losses of -4.1% and -2.8%, respectively. The Nasdaq-100 Index® (NDX®) registered a fairly muted decline of only -2.1%.
The Nasdaq Global Indexes, which aim to capture returns in various global markets, continued to decline. They had consistent losses ranging from the -6.8% return of the Nasdaq US Small Cap™ (NQUSS™) to the -2.1% return of the Nasdaq US Large Cap™ (NQUSL™). The Nasdaq Emerging Markets™ (NQEM™) and the Nasdaq Developed Markets™ (NQDM™) both posted similar returns of -3.7% and 3.3%, respectively. The regional indexes Nasdaq Europe™ (NQEU™), and Nasdaq ASPA Ex Japan™ (NQASPAXJP™) both slightly underperformed relative to the -3.4% return from Nasdaq Global™ (NQGI™).
All the Nasdaq OMX Nordic Indexes delivered negative returns this month. Overall, they declined by an average of -3.6%. The indexes were fairly uniform in their returns with the OMX Copenhagen 25™ (OMXC25™) posting the lowest return of -4.7% and the OMX Nordic 40™ (OMXN40™) posting the highest return of -2.6%.
Within Nasdaq’s Thematic Tech suite, all 25 indexes posted negative returns averaging at -5.5%. Though the entire suite fell, there was still a wide dispersion of performance across the indexes. The Nasdaq Junior Biotechnology™ Index (NBIJR™) and Nasdaq Lux Health Tech™ Index (NQHTEC™) plummeted this month with double-digit losses at -10.4% and -12.8% respectively. On the other hand, the Nasdaq Global Innovative Tech™ (NYGIT™) and the Nasdaq Global AI and Big Data™ (NYGBIG™) had less significant downturns of -0.7% and -0.8%, respectively.
Continuing the theme of decline, the Nasdaq Thematic ESG Indexes were also hit hard this month. The losses ranged from -4.5% to -21.3% with an average return of -10.7%. After an impressive six-month gain of 54.5% heading into October, the Nasdaq Sprott Junior Uranium Miners™ (NSURNJ™) had the smallest loss across this suite this month of -4.5%. In contrast, the Nasdaq Clean Edge Green Energy™ (CELS™) now has a trailing six-month loss of 25.3%, after dropping -21.3% this month. Similarly, the Nasdaq Sprott Lithium Miners™ (NSLITP™) now has a trailing six-month loss of -31.1% after dropping -21.1% this month.
Nasdaq Dorsey Wright Indexes also trended negative. The returns ranged from 0.8% to -9.9% with an average of -5.5%. The sole positive return was from Dorsey Wright Utilities Tech Leaders™ (DWUT™) at 0.8%. The Dorsey Wright Healthcare Tech Leaders™ (DWHC™) faced the strongest headwinds finishing the month with a -9.9% return.
The Nasdaq Dividend and Income Indexes also had uniformly negative returns, but with smaller movements than some of the other categories, with an average return of -3.6% this month. The Nasdaq International BuyBack Achievers™ (DRBXUS™) had the largest decline at -5.1%, while the Nasdaq US Broad Dividend Achievers™ (DAA™) fell the least, down -1.8%.
Nasdaq Options Indexes were more of a mixed bag than other segments of Nasdaq’s index suite. Returns averaged slightly negative this month at -0.2%. The Credit Suisse Nasdaq Gold FLOWS103 Total Return™ (QGLDITR™) generated the highest return, up 4.9%, and the Credit Suisse Nasdaq WTI Crude Oil FLOWS 106 TR™ (QUSOITR™) experienced the lowest return at -4.3%.
Nasdaq Green Economy Indexes, a family of indexes emphasizing green investments, were uniformly negative averaging a return of -6.8%. Nasdaq OMX Solar™ (GRNSOLAR™) declined the most, returning -11.3%. Nasdaq OMX Wind™ (GRNWIND™) and Nasdaq OMX US Water™ (GRNWATUSL™) declined the least, returning -4.5% and -4.6%, respectively.
Last but certainly not least, Nasdaq Crypto Indexes bucked the trend with every index returning positively at an average of 19.9%. Driven by changing regulations in the Bitcoin ETF space, Nasdaq Bitcoin™ (NQBTCS™) recorded a return of 28.1%. Nasdaq Ethereum™ (NQETHS™) relatively lagged with a return of 8.6%.
The October performance of all 107 indexes gives a snapshot of the current challenges facing financial markets. While this month’s returns were largely negative, it is important to keep in mind that the current market conditions are not future market conditions. There are merited concerns around the Middle East and central bank policy but, at the same time, we have seen annualized US GDP rise to 4.9% in the third quarter of 2023 and strong job growth. There are still murmurs of a soft landing but there is also the possibility that the past month’s performance is a healthy market correction after the bullish first half of the year and this is a no-landing scenario (or this was the soft landing). The large spread of returns from the Nasdaq Indexes -- +28.1% to -21.3% -- reflects the conflicting nature of current market conditions and departs from the past correlation between cryptocurrencies and growth tech. One thing is certain – as the year draws to a close with market conditions continually shifting it is critical to remain vigilant.
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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 , 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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