Insight Nasdaq 100 Index Commentary – Monthly Update

October 12, 2026
Nasdaq 100 Index Commentary

About the index

  • The Nasdaq-100 is one of the world’s preeminent large cap growth indexes.

  • The companies in the Nasdaq-100 include the largest non-financial companies listed on the NASDAQ Stock Market based on market capitalization.

Overview

  • In September, the Nasdaq-100 Index (NDX) returned 3.30% vs. -0.35% for the S&P 500.
  • NDX’s outperformance was driven by its differentiated holdings and overweight position in the Technology sector.
  • Equity markets showed mixed performance in September, as strength in large-cap growth companies contrasted with broader weakness across the market.
  • The Federal Open Market Committee (FOMC) held their meeting and hiked the Fed Target Rate by 0.25% and placed the target range between 3.75% - 4.00%. This was the first increase in three years, as inflation remained elevated and economic growth remained solid.
  • Geopolitical tensions and energy markets remained key areas of focus during September, with developments surrounding the Iran conflict contributing to elevated oil prices. Oil traded above $100 per barrel during the month as disruptions to regional supply routes remained a concern, adding to broader inflationary pressures

Sector Performance for September

Sector Performance for September

September Sector Returns by Contribution

September Sector Returns by Contribution

Data: Bloomberg, L.P., as of 2026/09/30. An investor cannot invest directly in an index. Past performance does not predict future results. All data is in USD unless indicated otherwise. 

The Index uses the Industry Classification Benchmark (“ICB”) classification system which is composed of 11 economic industries: basic materials, consumer discretionary, consumer staples, energy, financials, health care, industrials, real estate, technology, telecommunications and utilities.

NDX Highlights

  • Strength from several large-cap growth companies helped fuel equity market gains, with continued momentum in artificial intelligence serving as a key driver of performance.
  • Intel, a semiconductor and technology company, had the best total performance for the month which was driven by growing optimism around AI driven data center demand, strong demand for its Xeon processors and continued progress in its foundry and manufacturing initiatives.
  • Advanced Micro Devices and Meta Platforms were also among the strongest performers in September, supported by continued enthusiasm around artificial intelligence. Meta benefited from strong early adoption of its Muse AI assistant following its September launch, while AMD gained on expectations that growing adoption of AI agents could drive greater demand for CPUs and data center infrastructure.

Source: Bloomberg, L.P., as of 2026/09/30. Past performance is not a guarantee of future results. Holdings are subject to change and are not buy/sell recommendations. Top and bottom performers for the month by absolute performance. 

Outlook

  • The Federal Open Market Committee raised its target rate by 0.25% in September, as inflation remained elevated. Updated projections point towards potentially more interest rate hikes in the future, keeping inflation, labor market conditions and future monetary policy decisions a key area of focus.
  • Artificial intelligence remains a key theme, as continued AI infrastructure investment and demand support the growth outlook for many constituents. Looking ahead, investors will likely remain focused on whether continued AI-related spending translates into sustained earnings growth, particularly as higher interest rates and elevated valuations create a more challenging backdrop.
  • Earnings estimates remain elevated in NDX. Twelve-month forward earnings-per-share growth was estimated at 29% in December 2025. It has now risen to 41% as of end of the month of September. Weakness in earnings growth may increase volatility in NDX.

Forward Twelve-Month Earnings-Per-Share Estimated Growth Rate

Forward Twelve-Month Earnings-Per-Share Estimated Growth Rate

Source: Bloomberg, L.P., as of 2026/09/30. Performance data quoted represents past performance, which is not a guarantee of future results. Data in USD. There is no guarantee the estimates provided will be realized.

Historical Performance

Historical Performance

Data: Invesco, Bloomberg L.P., as of 30 September 2026. Data in USD.

Data: Bloomberg, L.P., as 30 September 2026. An investor cannot invest directly in an index. Data in USD.

Investment Risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

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