NASDAQ 100 The NASDAQ-100, often abbreviated NDX, is a stock market index that tracks the performance of the 100 largest non-financial companies listed on the NASDAQ Stock Market. It is a subset of the broader NASDAQ Composite Index, which includes all companies listed on the NASDAQ. Here's a detailed overview of the NASDAQ-100: NASDAQ-100 Index: 1. Composition: - The NASDAQ-100 consists of 100 non-financial companies listed on the NASDAQ Stock Market. - The constituent companies are selected based on factors such as market capitalization, liquidity, and industry representation. - The index is known for its focus on technology and Internet-related companies. 2. Calculation: - The NASDAQ-100 is a modified capitalization-weighted index, meaning that the weight of each constituent company is based on its market capitalization, with certain limitations to prevent over-concentration in a few stocks. 3. Key Sectors: - Technology: Major technology companies are heavily represented, including giants such as Apple, Microsoft and Amazon. - Consumer Discretionary: Retail and consumer products companies. - Health Care: Biotechnology and pharmaceutical companies. - Communications Services: Media and telecommunications companies. 4. Market capitalization: - The NASDAQ-100 is often considered a benchmark for large-cap technology and growth companies. - Changes in the index value reflect changes in the collective market value of its constituent companies. 5. Significance: - The NASDAQ-100 is closely followed by investors, traders and analysts as a key indicator of the performance of technology and growth-oriented sectors. - It is used as a benchmark for various financial products, including exchange-traded funds (ETFs) and futures contracts. 6. Global Technology Influence: - Because many of the world's leading technology companies are listed on the NASDAQ, the index has a global impact on investor sentiment and market trends. 7. Regular Review: - The composition of the NASDAQ-100 is reviewed periodically and companies may be added or removed to ensure that the index reflects the evolving nature of the technology and growth sectors. 8. NASDAQ-100 Futures and ETFs: - Traders can gain exposure to the NASDAQ-100 through futures contracts, allowing them to speculate on the future movements of the index. - Exchange-traded funds (ETFs), such as the Invesco QQQ Trust (QQQ), track the performance of the NASDAQ-100. 9. Influencing Factors: - Earnings Reports: Corporate earnings reports from NASDAQ-100 companies, especially in the technology sector, can have a significant impact on the index. - Technological Innovations: Advances and disruptions in technology often influence the direction of the index. - Market Sentiment: Investor sentiment, global economic conditions and geopolitical events can affect the NASDAQ-100. 10. Market Hours: - The NASDAQ-100 follows the trading hours of the NASDAQ Stock Market, typically from 9:30 a.m. to 4:00 p.m. Eastern Time. In summary, the NASDAQ-100 is a prominent index representing the performance of major non-financial companies listed on the NASDAQ stock exchange, with a particular emphasis on the technology and growth sectors. It is a key reference point for investors tra