The Nasdaq Composite Index is an index of more than 3,000 common stocks listed on the Nasdaq Stock Market. It is one of the most widely followed indices of the stock market, along with the Dow Jones Industrial Average and the S&P 500. The index was created in 1971, with a base value of 100, and it is updated continuously in real time throughout the trading day on the NASDAQ exchange.
The Nasdaq Composite Index is composed of a range of securities across different industries and market markets, including small-cap stocks, large-cap stocks and international stocks. Many well known companies are components of the index including Apple, Amazon and Microsoft.
The Nasdaq Composite Index has had a volatile history, reaching its highest level in the first quarter of 2019 at 8,133.30. This is more than double its level in the fourth quarter of 2017. The index has also been subject to serious declines. It dropped more than 44% during the dot-com crash of the early 2000s, but then recovered to double its high in 2015.
The Nasdaq Composite Index is a widely followed benchmark for the performance of the stock market. Although it is not based on a market capitalization weighted index, as is true of the S&P 500, companies with high market capitalization tend to have of greater representation.
Analysts generally consider the index to be an important measure of the overall tech sector, as well as of the performance of the stock market in general. This is because the index contains a significant portion of the largest and most influential companies in the tech sector – such as Google, Facebook, and Apple.
The tech industry is often used as an indicator of the overall health of the economy. This is because technology generally relates to the way that retailers and consumer goods businesses develop and use technology to better meet the needs of their customers. As companies innovate and develop new technology the economy is given a boost.
The Nasdaq Composite Index is also seen as a good measure of the financial health of the tech sector. It is often used to gauge the overall performance of the sector, and as a result, investors use it as a guide for investing in tech stocks.
The Nasdaq Composite Index provides an important snapshot of the stock market and how it is performing in real time. Investors use the index to gain insights into the performance of the tech sector, and to make informed decisions about which stocks to invest in. It is considered to be an important measure of the overall performance of the stock market, and provides investors with the information they need to make informed decisions about their investments.
