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Nasdaq 100 Composition Explained: A Comprehensive Look at th 2024-11-20 11:50

Nasdaq 100 Composition Explained: A Comprehensive Look at th

    The Nasdaq Composite Index is one of the most popular and influential stock market indices in the United States. It tracks the performance of the largest and most liquid companies listed on the Nasdaq Stock Market, which includes technology, biotechnology, healthcare, and other growth-oriented sectors.

As of my last update, the Nasdaq Composite had an average closing price of $3,923.43 as of October 2021, up from its all-time low of $2,457.59 in March 2020. This index has been closely watched by investors and traders alike for years due to its high volatility and sensitivity to global economic events.

  One of the key components of the Nasdaq Composite is the "Big Ten." These ten stocks represent the top-performing companies within the Nasdaq Composite, based on their revenue growth and profitability over time. The Big Ten includes:

Apple Inc (AAPL)

Alphabet Inc (GOOGL)

Microsoft Corporation (MSFT)

Amazon.com Inc (AMZN)

Visa Inc (V)

Netflix Inc (NFLX)

NVIDIA Corporation (NVDA)

Facebook Inc (FB)

PayPal Holdings Inc (PYPL)

Visa Inc (V)

  These companies have consistently shown strong financial performance and high market valuation, making them valuable investments for long-term growth. Additionally, they are known for their innovation and technological advancements that have shaped the modern tech industry.

  In recent years, the Nasdaq Composite has seen significant changes in the Big Ten. For example, in 2019, Netflix was added to the list after it reported record-breaking earnings and gained popularity with its streaming service. Meanwhile, in 2020, Zoom Video Communications Inc (ZM) entered the Big Ten after the COVID-19 pandemic forced many businesses to rely heavily on remote work tools.

  Despite these changes, the Nasdaq Composite remains an important indicator of the health of the U.S. economy and the overall market. Its performance can provide insight into macroeconomic trends, such as inflation rates or interest rate movements, and help investors make informed decisions about their portfolio allocation.

  For example, during the pandemic, many businesses were forced to close temporarily, leading to a decline in demand for services provided by traditional industries like retail and travel. However, some companies like e-commerce giants like Amazon and Alibaba were able to adapt and thrive, providing evidence that the Nasdaq Composite reflects both the strength and weakness of the broader economy.

  In conclusion, the Nasdaq Composite provides a comprehensive view of the performance of the largest and most liquid companies in the U.S. market. Its Big Ten companies, including Apple, Google, Microsoft, and more, have historically been valued for their innovation and technological advancements, making them attractive investments for those seeking long-term growth. As the market continues to evolve, it will be crucial for investors to stay informed and aware of changes in the Big Ten and the broader market.