#MarketRebound Recently, Nasdaq faced difficulties with its stocks, but RBC Capital Markets suggests that a market recovery may soon yield profits, even considering the pressure from the slowdown in the fintech sector and the potential decline in index revenues.

What does this mean?

While Nasdaq struggled with the slowdown of fintech revenues and market outflows, RBC Capital Markets believes that recovery is around the corner. The exchange could benefit from promising trends and attractive valuations, standing out among competitors. Nasdaq's Market Services platform may perform better due to increased market volatility, which typically boosts trading volumes in stocks and derivatives. RBC's models still forecast steady growth in U.S. equity derivatives, although there are shortcomings in capital markets technology. Consequently, fintech revenue expectations for 2025 have been set conservatively low, with a growth estimate for technology at 7%. Nevertheless, market services revenues are expected to exceed consensus in the upcoming quarters, allowing RBC to maintain an outperform rating with a target price of $95, even though Nasdaq is currently at $69.83.