Nasdaq-100
The Nasdaq-100 is a stock market index comprising equity securities from 100 of the largest non-financial companies listed on the Nasdaq Stock Market. This index is one of the most widely followed benchmarks in the world, reflecting the performance of the technology-heavy and innovative companies that play a crucial role in the global economy.
Composition
The Nasdaq-100 index includes companies from a diverse range of industries, excluding financial services. Major sectors represented include technology, consumer services, health care, and industrials. This focus allows the Nasdaq-100 to act as a barometer for the performance of high-growth sectors, particularly the technology industry.
Relationship with Nasdaq
The Nasdaq Stock Market, established by Nasdaq, Inc., is the platform where the Nasdaq-100 listed companies trade. Unlike the Nasdaq Composite, which includes nearly all the securities listed on the Nasdaq exchange, the Nasdaq-100 is more selective, highlighting only those non-financial firms with significant market capitalizations.
Futures and ETFs
Investors can gain exposure to the Nasdaq-100 through various financial instruments. Nasdaq-100 futures and options provide a means for traders to speculate on or hedge against the index's movements. The Invesco QQQ Trust is one of the most popular exchange-traded funds (ETFs) that tracks the performance of the Nasdaq-100, providing investors with a way to invest in the index as if it were a single stock.
Historical Impact
The Nasdaq-100 has been pivotal in highlighting the rise of technological and innovative companies since its inception. It has witnessed and reflected the impact of major economic events, such as the Dot-com bubble of the late 1990s and early 2000s, and the financial crisis of 2008.
Global Influence
Given the prominence of the companies included in the Nasdaq-100, the index holds considerable sway in global markets. Giants like Apple Inc., Microsoft Corporation, and Alphabet Inc. make up a significant portion of the index, meaning that changes here can signal broader market trends.