Nasdaq, Inc. Is Down 8%. What History Says After 80 Days.

Nasdaq, Inc. Recovered From Its 80-Day Slump. What History Says.

Nasdaq, Inc. (NDAQ) has officially exited the yellow zone as of May 18, 2026, marking a significant shift in its risk profile. The stock spent 83 days in a persistent drawdown, falling as much as 8.3% from its all-time high of $100.98. This recovery into the green zone indicates that while the stock remains below its peak, the immediate pressure that characterized the last three months is beginning to subside.

Our data shows that the current price of $92.60 represents a notable improvement from the deeper retracements seen earlier in this cycle. The Drawdown Severity Score™ currently sits at 1.7, which we categorize as Slightly Elevated. While this is a constructive move, the stock has yet to fully erase the losses incurred during this 83-day stretch.

Assessing the 83-Day Pullback

The journey through the yellow zone was longer than the typical volatility seen in this ticker. Historically, Nasdaq, Inc. (NDAQ) experiences an average drawdown duration of just 50 days. This current 83-day event has lasted roughly 66% longer than the historical average, suggesting a more stubborn period of selling than investors usually encounter with this asset.

The peak decline of 8.3% also exceeds the historical average max drawdown of 4.5%. When a stock exceeds its average drawdown depth and duration simultaneously, it often signals a shift in market sentiment or a reaction to specific fundamental headwinds. In this case, the stock moved from a position of relative strength to a period of sustained weakness before finding the support necessary to return to the green zone.

Recent market activity has provided some tailwinds for the recovery. According to TIKR.com, Morgan Stanley recently raised earnings estimates for exchanges ahead of the first quarter reports, specifically providing a boost to Nasdaq, Inc. (NDAQ). Additionally, Quiver Quantitative reported that the company released its Q1 2026 earnings, providing the market with the updated financial transparency needed to re-evaluate the stock's valuation.

Historical Context and Comparable Events

To understand the current recovery, we must look at how Nasdaq, Inc. (NDAQ) behaves during more severe market cycles. Our data tracks 162 total historical drawdown events for this stock. While the current 8.3% dip is meaningful, it remains far from the most extreme scenarios in the company's history.

Our records show that Nasdaq, Inc. (NDAQ) has dropped by 40% or more exactly 3 times in its history. These severe events are rare but incredibly impactful. The average duration of those comparable drops was 1,406 days, representing multi-year recovery cycles.

It is important to note the small sample size for these 40% declines. With only 3 such events in our dataset, the average duration of 1,406 days is heavily influenced by specific historical periods and may not predict future performance with high certainty. However, it serves as a reminder of the "tail risk" associated with the stock during major financial crises.

The current Drawdown Severity Score™ of 1.7 is a far cry from the scores generated during those historic 40% collapses. By returning to the green zone, the stock is signaling that its current trajectory is following a path of normalization rather than a descent into a deep, multi-year correction.

Technical Indicators and Market Sentiment

As Nasdaq, Inc. (NDAQ) moves back toward its all-time high, it is clearing key technical hurdles. According to Yahoo Finance, the stock is currently trading above its 50-day Simple Moving Average (SMA). This technical milestone often coincides with a transition in our Drawdown Severity Score™ from yellow to green, as it confirms that short-term momentum is aligning with the broader recovery.

However, institutional activity remains mixed. MarketBeat recently reported that Phoenix Financial Ltd. sold shares of Nasdaq, Inc. (NDAQ), and Stock Titan noted a Form 144 filing listing 5,093 restricted shares for sale through a Morgan Stanley broker. These localized sell-offs are common even during recovery phases, but they explain why the stock is still 8.3% below its peak despite the improving severity score.

Monitoring the Path to $100.98

The transition to the green zone is a milestone, but the drawdown is not over until the stock reaches a new all-time high. To close the current -8.3% gap, Nasdaq, Inc. (NDAQ) must continue to see the type of earnings optimism recently noted by analysts.

Our data shows that the stock is currently in a "Slightly Elevated" risk state. This means that while the immediate threat of an accelerating sell-off has diminished, the stock is still sensitive to broader market volatility. Investors often watch the 1.7 Drawdown Severity Score™ to see if it continues to trend toward zero, which would indicate a full return to price leadership.

We will continue to track the Drawdown Severity Score™ for Nasdaq, Inc. (NDAQ) as it attempts to reclaim the $100.98 level. A reversal back into the yellow zone would suggest that the 83-day drawdown is entering a second, more complex phase. For now, the move to the green zone provides the first data-driven evidence of a stabilizing trend.