News & Insights
Performance was largely positive for the 106 indexes tracked in the report for May, with 97 indexes advancing and 9 retreating. The average return across the 106 indexes was 4.5%, a reversal from the previous month when the average return was -3.8%. The Nasdaq-100 Index® (NDX®) was up 6.3%, marking the index's best month since November. The Nasdaq Ethereum™ (NQETHS™) was the best-performing index, surging by 27.7%, due to improved sentiment towards cryptocurrency post a landmark approval by SEC. The worst-performing index was the BVP Nasdaq Emerging Cloud™ (EMCLOUD™), down 4.7%, due to headwinds from customers prioritizing spending on generative artificial intelligence in a cost-conscious environment.
Overall, there was strength across all areas, with some of the most significant gains within the Nasdaq Crypto Indexes, Nasdaq Thematic ESG Indexes, and Nasdaq Green Economy Indexes.
Within the Nasdaq Featured Indexes, the PHLX Gold/Silver Sector™ Index (XAU™) stood out as the top performer, up 8.8%, aided by China’s stimulus measures, falling dollar and bond yields. The Nasdaq Next Generation 100™(NGX™) was the worst performer, up 1.9%. The Nasdaq-100 Index® (NDX®) wrapped up May in the green with a gain of 6.3%, buoyed by continued strength in the artificial intelligence (AI) theme. These indexes had an average return of 4.6%.
The Nasdaq US Small Cap™ (NQUSS™) was the best performer among the Nasdaq Global Indexes, climbing 5.0%. The Nasdaq Emerging Markets™ Index (NQEM™) was the relative underperformer, up a modest 1.2%. Developed markets showed more resilience than emerging markets. Overall, there was strength across all indexes, with the suite registering average gains of 3.4%.
The Nasdaq OMX Nordic Indexes also registered positive returns, with the Nasdaq OMX Nordic 120™ (NOMXN120™) leading the way with a gain of 4.3%. The OMX Stockholm 30® (OMXS30®) was the relative underperformer, losing 1.9% over the past month. The five Nasdaq OMX Nordic Indexes achieved an average return of 3.6%, higher than the average returns recorded in April.
Nasdaq Thematic Tech Indexes posted average returns of 2.3% in May, a reversal from average losses of 5.3% observed last month. The PHLX Semiconductor™ (SOX™) was the best performer among the index suite, surging by 9.6%. The Nasdaq US Smart Semiconductor™ (NQSSSE™) followed closely as the second-best performer, with a gain of 8.4%. Investor sentiment towards the semiconductor industry got a boost due to continued optimism surrounding AI and earnings beats from select semiconductor companies including mega-cap Nvidia. The worst performer was the BVP Nasdaq Emerging Cloud™ Index (EMCLOUD™), which registered a loss of 4.7% within this group.
Nasdaq Thematic ESG Indexes registered an average gain of 7.4%, an improvement compared to the previous month's modest gain of 1.0%. The Nasdaq Clean Edge Green Energy™ (CELS™) emerged as the top performer, surging by 16.5%, due to the expectation that there will be high demand for clean energy from EVs, data centers and industrial uses. The Nasdaq Sprott Lithium Miners™ Index (NSLITP™) was the relative underperformer, registering modest gains of 1.6%. Gains were muted relative to other thematic ESG indexes due to near-term headwinds from lower demand for EVs.
All indexes in the Nasdaq Dorsey Wright suite delivered gains in May, resulting in an average gain of 4.5%. TheDorsey Wright Consumer Cyclicals Tech Leaders™ (DWCC™) was the top performer, with an impressive gain of 7.6%. Conversely, the Dorsey Wright Energy Tech Leaders™ (DWEN™) was the relative underperformer, up 0.9%.
All indexes in the Nasdaq Dividend and Income group posted gains last month, registering average gains of 3.4%. The Nasdaq Technology Dividend™ (NQ96DIVUS™) was the best-performing index of the suite, delivering a gain of 7.5%. The Nasdaq US Dividend Achievers 50™ (DAY™) and Nasdaq US Multi-Asset Diversified Income™ (NQMAUS™) were the relative underperformers, each registering a modest gain of 1.3%.
All but one index in the Nasdaq Options suite registered upward movement in May. The top performer of the group was the Credit Suisse Nasdaq Silver FLOWS106 TR™ Index (QSLVOTR™), recording a gain of 11.8%, followed by the Nasdaq-100 Quarterly Protective Put 90™ (NQTRI™), up 5.8%. The relative underperformer of the group was the Credit Suisse Nasdaq WTI Crude Oil FLOWS 106 TR™ (QUSOITR™), which registered a loss of 3.8%. On average, the Nasdaq Options Indexes saw a solid gain of 3.3% last month.
Every index in the Nasdaq Green Economy suite registered gains in May, resulting in an average gain of 5.7%. While the best performer of the group was the Nasdaq OMX Solar™(GRNSOLAR™) with a gain of 13.1%, the relative underperformer was the Nasdaq OMX Global Water™ (GRNWATERL™), delivering a gain of 2.0%. Solar stocks, some of which are seen as indirect AI plays, rose in May as investors factored in higher demands on the electric grid to meet AI data center needs.
All four Nasdaq Crypto Indexes moved higher in May, recording the highest average gains across the entire suite of indexes. While the Nasdaq Ethereum™ (NQETHS™) emerged as the top performer with an impressive gain of 27.7%, the Nasdaq Bitcoin™ (NQBTCS™) was the relative underperformer achieving a smaller gain of 12.7%. The sentiment towards the cryptocurrency industry received a boost after the SEC approved ether ETFs, which are the second largest crypto assets, just six months after it approved bitcoin ETFs. This approval by the SEC is seen as a major step towards regulatory clarity for cryptocurrencies.
The Nasdaq-100 surged by 6.3%, reaching fresh record highs and bringing year-to-date returns to 10.2%. Bullish sentiment towards AI and broader technology companies were confirmed by better-than-expected earnings, which fueled the market higher, offsetting concerns that the Federal Reserve may not lower rates this summer. Nvidia and Apple contributed the most to the rally, up by 26.9% and 12.9% respectively, followed by other stocks including the likes of Qualcomm and Moderna, attesting to the strong ongoing demand for artificial intelligence. For the remainder of the year, the outlook remains one of cautious optimism driven by a strong outlook for AI demand, while debate surrounding the timing of interest rate cuts intensifies.
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