Nasdaq announced its Capital Access Platforms division launched a new leading indicator to provide corporates and investors with an outlook for the direction of initial public offering (IPO) activity with a high degree of predictability six months out. The ?Nasdaq IPO Pulse Index? suggests an upswing in potential IPO activity when it is in an uptrend ?

it is now at its higher level since 2021 ? compared to a pullback in IPO activity when the index is trending in the other direction. The Nasdaq IPO Pulse Index is driven by six leading indicators of IPO market activity including: Year-over-year changes in the Fed Funds Rate; Year-over-year changes in the VIX Index; Recent returns (S&P 500 Price Annual Growth); Valuations (S&P 500 Enterprise Value to Sales Ratio Annual Growth); Investor sentiment; Nasdaq?s proprietary IPO data.

More than 50 candidate series were rigorously backtested over the last three decades to arrive at these six indicators, which it believe have proved to consistently lead directional shifts in IPO activity. Combined, the Nasdaq IPO Pulse Index anticipates turns in IPO activity by about six months on average.