July 24 (Reuters) - Nasdaq NDAQ.O beat Wall Street estimates for second-quarter profit on Thursday, as volatile markets boosted trading volumes while first-half listings on its eponymous exchange hit their highest since 2021.

U.S. markets were roiled during the quarter due to President Donald Trump's aggressive tariff announcements, renewed tensions in the Middle East and uncertainty over the Federal Reserve's monetary policy.

The resulting volatility drove a spike in trading volumes, with Nasdaq recording a surge in U.S. equity options contracts, while U.S. cash equities volumes hit a record.

The company's market services revenue from trading grew 21% to a quarterly record.

Revenue from its financial technology unit, which includes anti-financial crime and capital markets infrastructure software, increased 10% to $464 million in the second quarter, while its index business revenue jumped 17% to $196 million.

The company has expanded beyond trading and listings into financial technology and software to generate more predictable, recurring revenue that is less sensitive to market volatility.

IPO MARKET RECOVERS

IPO activity on the exchange rebounded in the first half of 2025, reaching its highest level since 2021, when listings had hit a global record.

Several high-profile companies chose the exchange for their market debut, while mergers with blank-check firms and listing transfers from rival exchanges also contributed to Nasdaq's gains.

Companies such as neo-bank Chime CHYM.O and AI infrastructure firm CoreWeave CRWV.O helped lift deal activity for Nasdaq, signaling a tentative return of investor appetite for new offerings after a years-long dry spell.

In June, CEO Adena Friedman said Nasdaq was in active talks with companies looking to make stock market debuts, reflecting optimism for a broader recovery in the listings market.

Nasdaq reported second-quarter revenue of $1.31 billion, up 13% from a year earlier.

Profit came in at 85 cents per share in the three months ended June 30. Analysts on average had expected 81 cents, according to data compiled by LSEG.

(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)

((Manya.Saini@thomsonreuters.com; X: manya__saini;))