Key Highlights

● Nasdaq Inc. closed at $103.30 on October 22, among the S&P 500's standout gainers.

● Third-quarter revenue rose to $1.48 billion from a year earlier.

● Index-business revenue surged, helping earnings top analysts' expectations.

● The Nasdaq Composite fell 694 points the same day, its steepest drop since June 5.

Nasdaq Inc. (NASDAQ:NDAQ) jumped on Thursday, October 22, 2026, closing at $103.30 and finishing among the standout gainers in the S&P 500 after the exchange operator beat third-quarter earnings expectations on the back of surging index revenue.

The rally carried a touch of irony. While Nasdaq Inc.'s shares climbed, the Nasdaq Composite index that bears its name tumbled 694 points to 26,008.86, its steepest drop since June 5. The S&P 500 fell 93.74 points to 7,663.43, its worst day since July.

What drove the beat

Nasdaq Inc. reported third-quarter earnings that topped analysts' expectations. Revenue rose to $1.48 billion from a year earlier, and the standout was the company's index business, where revenue surged.

That division licenses benchmarks such as the Nasdaq-100 to exchange-traded funds and other investment products, and earns fees linked to the assets tracking them. When markets rally and investors pour money into index-linked funds, those fees tend to rise, giving the company a source of income that grows alongside investor enthusiasm.

More than a stock exchange

Although the name is best known for its stock market, Nasdaq Inc. has spent years building out businesses beyond trading. Alongside its exchanges, it sells market data, index products and financial-technology software used by banks, brokers and regulators for tasks such as risk management and fighting financial crime.

That mix gives the company several ways to benefit from active markets, while the software and data units provide recurring revenue that does not depend on any single day's trading. Trading volumes, for one, were heavy on Thursday: 18.79 billion shares changed hands on US exchanges, compared with an average of 17.19 billion over the prior 20 sessions, according to market data.

Financials rose as tech sank

The broader session was defined by a sharp rotation. Technology stocks were hit hard after heavy AI spending plans from Meta Platforms (NASDAQ:META) and a slightly light outlook from Lam Research (NASDAQ:LRCX) renewed worries about the cost of the AI build-out. The Nasdaq Composite lost about $1 trillion in market value as it ended a seven-session winning streak.

But financials were among the sectors that rose. Blackstone (NYSE:BX) jumped after signalling a big fourth quarter for deal exits, and futures exchange operator CME Group (NASDAQ:CME) rallied after a double upgrade from JPMorgan. About two of every three S&P 500 stocks gained ground, according to market reports.

Treasuries also rallied strongly. The 10-year yield fell back below a closely watched threshold for the first time since September 22, while volatility picked up: the Cboe Volatility Index, or VIX, rose 2.35 points to 19.03.

Nasdaq Inc.'s Index Business Faces a Market Test

For Nasdaq Inc., a key question is how its index business holds up if the selloff in AI-heavy technology stocks deepens, since the value of assets tracking its benchmarks can swing with the market. Investors will also be watching trading activity, which picked up on Thursday's volatile session. On the calendar, the Federal Reserve's rate decision on October 28 and big-tech earnings from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) the same day could test the Nasdaq Composite again, with knock-on effects for sentiment across the exchange operator's businesses.