Nasdaq reports negative performance across its indices in June

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Nasdaq

Performance in June across Nasdaq’s suite of indexes was generally negative with an average loss of 8.7 per cent across the 99 indexes.

 

The exchange writes that June’s performance was more extreme when compared to May’s average loss of 1.0 per cent and slightly more than April’s average loss of 8.5 per cent.

 

Overall, six indexes generated positive price performance, while 93 indexes posted declines. In the attached report, all major Nasdaq Featured Indexes were in the red. The Nasdaq-100 lost 9.0 per cent versus 1.7 per cent in May. The Nasdaq-100 Ex-Tech Sector and Nasdaq-100 Dorsey Wright Momentum indexes were down 5.7 per cent and 7.5 per cent respectively and were the relative outperformers in the suite of Nasdaq Featured Indexes. The PHLX Gold/Silver Sector Index and KBW Bank Index were the worst-performing of the Nasdaq Featured Indexes, losing 13.7 per cent and 13.3 per cent respectively.

 

Nasdaq Global Indexes posted declines across the board in June, with Nasdaq Europe and Nasdaq US Mid Cap hit the hardest, posting losses of 10.6 per cent and 10.2 per cent respectively. Developed Markets continued to underperform Emerging Markets, declining 9.0 per cent versus 7.3 per cent. Losses across large-cap and small-cap were uniform, down 8.3 per cent and 8.9 per cent respectively. Within Europe, Nasdaq’s Nordic Indexes all posted losses in June, with Nasdaq OMX Nordic 120 and OMX Stockholm 30 registering the highest losses, down 8.7 per cent and 8.3 per cent respectively. Within EM, Asia-Pacific ex-Japan fell by 8.0 per cent.

 

Nasdaq’s Dividend & Income Suite registered declines in June, a sharp reversal from its strong performance in May where all but one of the 10 indexes finished in positive territory. The Nasdaq Select Canadian Preferred Share Index was the relative outperformer, posting a loss of 5.1 per cent. The laggards of the month were the Nasdaq US Buyback Achievers Index and Nasdaq Technology Dividend Index down 10.2 per cent each.

 

Nasdaq’s Dorsey Wright Indexes, driven by exposure to the momentum factor, demonstrated broad-based weakness across Energy, Utilities, Technology, and large/mid-caps. The Dorsey Wright Energy Tech Leaders Index was the worst performing of the Dorsey Wright Suite, losing 20.8 per cent in June, a strong reversal from its previous month performance where it was the top performer, posting a gain of 15.2 per cent. Dorsey Wright Basic Materials Tech Leaders was down 20.1 per cent and was the second-worst performer.  Dorsey Wright Emerging Markets Tech Leaders and Dorsey Wright SmallCap Tech Leaders were also down significantly, with losses of 15.7 per cent and 15.3 per cent respectively. Dorsey Wright Healthcare Tech Leaders and Dorsey Wright Consumer Staples Tech Leaders were the relative outperformers, down 3.5 per cent and 4.9 per cent respectively.

 

Within the lineup of the Nasdaq Green Economy Indexes, the Nasdaq OMX Solar Index led the way in June with a gain of 11.9 per cent, continuing its strong performance from the previous month. As with the previous month, the Nasdaq OMX Solar Index was the top-performing index of all the 99 indexes tracked in our report. Nasdaq OMX Wind Index was the laggard of the group, posting a decline of 9.8 per cent. Nasdaq OMX US Water showed modest resilience, down 5.7 per cent the month of June.

 

Within Nasdaq’s Thematic Tech suite of indexes, four out of 26 indexes finished the month with gains. Nasdaq’s Junior Biotechnology Index emerged as the strongest performer, posting gains of 9.4 per cent for the month of June, followed by Nasdaq US Healthcare Innovators and Nasdaq Biotechnology Index posting gains of 2.9 per cent and 1.0 per cent respectively. Nasdaq Clean Edge Green Energy registered a loss of 6.4 per cent for the month of June, a strong reversal from its outperformance of 6.8 per cent in May. The laggards for the month were PHLX Semiconductor, Nasdaq US Smart Semiconductor, and the Nasdaq CTA Artificial Intelligence Index posting losses of 17.5 per cent, 16.6 per cent and 14.1 per cent respectively. 

 

Finally, looking at other asset classes, including Options, Fixed Income, and Cryptocurrencies, the exchange reports that within Nasdaq’s Options suite, Nasdaq-100 Quarterly Collar 95-110 was the sole outperformer, posting a gain of 1.2 per cent. Other indexes posted declines, with the CBOE Nasdaq-100 Half BuyWrite Index and Nasdaq-100 Monthly Net Credit Collar 95-100 Index underperforming, down 5.6 per cent and 2.7 per cent respectively. Within the Bullet Shares (Fixed Income) suite, all indexes were down, a reversal from the month of May when all but two indexes posted positive returns. The BS High Yield Corporate Bond 2026 TR Index and BS High Yield Corporate Bond 2024 TR Index were the laggards, down 5.7 per cent and 5.5 per cent respectively. Finally, the losses across the suite of Nasdaq Crypto Indexes were dramatic, with the Nasdaq Crypto Index, Nasdaq Bitcoin Index and Nasdaq Ethereum Index down 41.7 per cent, 40.2 per cent and 47.3 per cent respectively.

 

The exchange writes that the economy may be on the cusp of a recession, with significant headwinds continuing to weigh on markets. “The Nasdaq Composite registered the worst first half of performance since the inception of the index in 1971; for the S&P 500, it was the worst first half since 1970. Inflation has been running at its fastest pace in more than 40 years, driven by rising food and energy prices. With the Fed raising interest rates, investors have been rotating out of growth names, which has hit sectors such as Technology particularly hard.

 

“If history is any indicator, the broader equity market has a decent chance of staging a healthy recovery in the second half after a turbulent first half of the year. As for when the market might hit its bottom, much would depend upon the timing of a potential recession, further actions by the Fed, and corporate profits for the rest of the year. We remain hopeful that markets will recover in the near term, especially in light of the widespread, compelling buying opportunities that now exist for investors operating on a long-term horizon.”

 

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Beverly Chandler
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Managing Editor