Nasdaq Lags as S&P 500, Dow Hit Records

U.S. stock indexes were on track to close August with broad gains, extending the market’s recovery from the summer selloff. The S&P 500 (SPX) was up about 3% for the month, while the Nasdaq Composite had risen about 4%. The Dow advanced roughly 2.1% in August, positioning it for a fifth consecutive monthly increase. Technology shares played a leading role in the month’s advance, helping drive the overall market higher.

Both the S&P 500 (SPX) and the Dow reached all-time highs earlier in August, underlining the strength of the rebound in large‑cap U.S. equities. These new peaks marked a contrast with the weakness seen earlier in the summer, when major benchmarks pulled back before regaining momentum later in the season.

Despite the broader recovery, the Nasdaq 100 (NDX) has not yet reclaimed its previous high. The index ended last week about 4% below its record set on June 2. This leaves the Nasdaq 100 (NDX) as the last of the major U.S. equity gauges still trading short of its peak, even as other benchmarks have moved on to new highs.

The gap between the Nasdaq 100 and its record reflects a period of divergence within U.S. markets. Over roughly ten months, leadership within the indexes has shifted, altering which sectors and companies are setting the pace. While technology remains an important driver, the underperformance of some large constituents has weighed on the index’s aggregate level.

The S&P 500’s return to record levels, alongside fresh highs in the Dow, signals that strength has broadened beyond the most growth‑oriented segments of the market. Gains across a wider range of sectors have supported these benchmarks, allowing them to surpass prior peaks even as the Nasdaq 100 lags.

At the same time, the Nasdaq’s shortfall underscores that not all parts of the market have fully participated in the latest advance. The ten‑month rift within the tech‑heavy index suggests an ongoing reshuffling of winners and laggards beneath the surface of headline levels. Investors monitoring U.S. equities face a landscape where overall indexes are near or at records, but performance dispersion across benchmarks remains notable.