Nasdaq and S&P 500 Performance: A Tale of Two Indices in 2025

The year 2025 has been a rollercoaster ride for investors, with the Nasdaq and S&P 500 indices experiencing significant fluctuations in performance. As we approach the midpoint of the year, let's take a closer look at how these two prominent indices have fared and what trends can be observed in their financial health and growth prospects.

Nasdaq 100 (^NDX) Performance

The Nasdaq 100, a market-capitalization weighted index that includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange, has had a mixed performance in 2025. As of February 25, 2025, the index had a return of 1.49% year-to-date (YTD) and 30.98% in the last 12 months. Over the past 10 years, the Nasdaq 100 had an annualized return of 17.93%, outperforming the S&P 500 benchmark which had an annualized return of 11.51%.



S&P 500 (^GSPC) Performance

The S&P 500, a widely followed index that represents the performance of the U.S. stock market, has also experienced ups and downs in 2025. As of February 25, 2025, the index had a return of 1.03% YTD and 26.74% in the last 12 months. Over the past 10 years, the S&P 500 had an annualized return of 11.51%.

Fundamentals and Growth Prospects

Tech companies like NVIDIA (NVDA) and Salesforce (CRM) have demonstrated robust fundamentals and growth potential, with strong earnings growth and positive outlooks. NVIDIA reported fiscal Q4 earnings growth of +61.5% and revenue growth of +70.7%, while Salesforce is expected to report earnings results on Wednesday, February 29, with forecasts for fiscal Q4 earnings growth of +21.5% and revenue growth of +17.5%.

Insurers like UnitedHealthcare (UNH), Humana (HUM), and Cigna (CI) have faced headwinds due to regulatory and legal issues, which may impact their financial health and growth prospects in the short term. UnitedHealthcare is facing a civil case brought by the U.S. Department of Justice regarding billing practices at its Medicare Advantage program, which has taken down other health insurers like Humana and Cigna.

Market Sentiment and Long-term Implications

The recent geopolitical events, such as the Russia-Ukraine conflict and the U.S.-China trade tensions, have had a significant impact on the overall performance of the Nasdaq and the S&P 500, leading to periods of volatility and uncertainty. The long-term implications of these events may continue to affect the indices, as they could lead to further economic sanctions, supply chain disruptions, and geopolitical risks.

In conclusion, the Nasdaq and S&P 500 indices have experienced mixed performances in 2025, with tech companies demonstrating robust fundamentals and growth potential, while insurers face headwinds due to regulatory and legal issues. The long-term implications of geopolitical events may continue to impact the indices, leading to periods of volatility and uncertainty. Investors should stay informed about the fundamentals and growth prospects of individual companies within these indices to make informed investment decisions.