What is the NASDAQ-100 index?
The NASDAQ-100 is made up of the 100 largest non-financial companies listed on the wider NASDAQ market. It features both US and foreign firms, representing industries including technology, retail, healthcare, media and biotechnology.
Where have you heard about the NASDAQ-100 index?
You’ve heard of the NASDAQ. The NASDAQ-100 isn’t its main index, that’s the NASDAQ Composite, but you’ll find a host of big-name brands starring on it, including Google, Microsoft, Starbucks, Marriott and Tesla.
What you need to know about the NASDAQ-100 index...
The stocks listed on the index are market cap weighted, which means the largest firms have the biggest impact on its value. However, there are limitations on the weights so no company can have too much influence on price. The maximum allowed is 24% of the weight of the index.
The index plunged into bear market territory during the global financial crisis of 2008, but has since rallied and reached record highs in the months following the election of US President Donald Trump.