The Nasdaq stock market said today its quarterly earnings fell 57 per cent as its employee compensation and technology expenses rose amid weak market conditions.
"From a financial point of view, Nasdaq directly felt the impact of the softening economy, demonstrated by a weaker IPO [initial public offering] market and a recent decline in average daily trading activity," Nasdaq chief executive Mr Wick Simmons said in a statement.
"We expect the current soft market conditions to continue for at least the balance of the year," he said.
The second-largest US stock market, which is preparing to offer its shares to the public, earned $19.58 million in the second quarter compared with profits of $45.30 million in the same period of 2000.
The New York Stock Exchange, Nasdaq's chief rival, yesterday reported a nearly 12 per cent drop in its first-half profit despite a rise in revenues and trading volumes.
The privately owned Big Board said it spent money to upgrade its technology.