The NASDAQ 100 is a stock market index that tracks the performance of the largest non-financial companies listed on the NASDAQ stock exchange in the United States. It includes 100 of the largest domestic and international companies based on market capitalization.
The NASDAQ 100 is known for its focus on technology, but it also includes companies from various other sectors such as consumer discretionary, healthcare, industrials, and telecommunications. Some well-known companies included in the index are Apple, Microsoft, Amazon, Facebook, Google, and Intel.
The index is weighted by market capitalization, meaning that larger companies have a greater impact on the index’s performance. This means that the performance of the largest companies in the index can heavily influence the overall performance of the NASDAQ 100.
The NASDAQ 100 is considered a benchmark for the technology sector and is often used by investors to gauge the performance of the broader technology industry. It is also used as a basis for various financial products, such as exchange-traded funds (ETFs) and index funds, which allow investors to gain exposure to the performance of the index.
One unique characteristic of the NASDAQ 100 is that it does not include financial companies, such as banks and insurance companies. This distinguishes it from other major stock market indices, such as the S&P 500, which includes a broader range of companies.
Investors and analysts closely monitor the NASDAQ 100 to assess the health and trends of the technology sector, as well as the overall stock market. The index’s performance is influenced by factors such as technological advancements, consumer trends, and global economic conditions.
In summary, the NASDAQ 100 is a stock market index that tracks the performance of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. It is weighted by market capitalization and is widely used as a benchmark for the technology sector. The index provides investors with insights into the performance of leading technology companies and offers various investment opportunities through financial products tied to its performance.