NASDAQ Composite

The NASDAQ Composite is a stock market index that measures the performance of more than 3,000 common stocks and similar securities listed on the Nasdaq Stock Market. Introduced on 5 February 1971, the index is maintained by Nasdaq, Inc. and is one of the most widely followed indicators of the United States equity market. Unlike the Dow Jones Industrial Average, which tracks a limited number of large companies, or the S&P 500, which represents large-cap U.S. corporations, the NASDAQ Composite includes companies across a broad range of market capitalizations and industry sectors, making it one of the most comprehensive benchmarks of the Nasdaq exchange.

The index is weighted by modified market capitalization, with larger companies exerting a greater influence on its value. Although it includes firms from diverse industries such as healthcare, financial services, consumer discretionary, industrials, biotechnology, and telecommunications, the NASDAQ Composite has a particularly strong concentration of technology companies. Major constituents have included corporations such as Apple Inc., Microsoft, Nvidia, Amazon, Alphabet Inc., Meta Platforms, and Tesla. Because of this composition, the index is widely regarded as a leading indicator of the performance of the technology sector and growth-oriented equities.

The NASDAQ Composite serves as a benchmark for investors, analysts, and policymakers in assessing the performance of companies listed on the Nasdaq exchange. It underlies a variety of financial products, including exchange-traded funds (ETFs), mutual funds, futures, and options, and is extensively used for portfolio benchmarking and market analysis. Together with the S&P 500 and the Dow Jones Industrial Average, the NASDAQ Composite is regarded as one of the three principal stock market indices representing the United States equity market.