The Nasdaq Composite Index is a stock index that reflects the changes of the NASDAQ stock market.
Nasdaq-listed companies cover all new technology industries, including software and computers, telecommunications, biotechnology, retail and wholesale trading. It mainly consists of hundreds of the fastest growing advanced technology, telecommunications and biological companies in the United States, including Microsoft, Intel, Apple, Meta, these household high-tech companies, thus becoming the synonym of the “new economy” in the United States.
The world’s most famous company, Microsoft, is listed on NASDAQ to achieve success.
In the way of compilation, the Nasdaq index can reflect the trend of American high-tech stocks better because it adopts the way of “market value weighting” and has the quarterly adjustment system. If you’re interested in technology companies in the US and want to see the overall performance of technology companies listed in the US, you can look at the Nasdaq Composite Index. (Tiger trade app – Quotes)
Nasdaq Composite Index, Dow Jones Industrial Average and Standard & Poor’s index are known as the three major indexes of American stocks. Among them, the Nasdaq has a stronger comprehensive, it contains more than 3000 companies, more than any other single stock market, and is one of the most influential stock market indexes.
The tech sector makes up more than 50% of the Nasdaq. It was followed by consumer services, represented by restaurant chains, retailers and travel services.
It’s important to note that many people confuse the Nasdaq Composite with the NASDAQ 100.
The NASDAQ 100 index is much smaller than the Nasdaq Composite Index, which is a basket of the 100 largest and most actively traded American companies.
