What is the NASDAQ Composite Index?

The NASDAQ Composite Index is a stock market index that includes all the common stocks and similar securities listed on the NASDAQ stock exchange. It serves as a broad indicator of the performance of technology and growth-oriented companies, as it is heavily weighted towards the technology sector, but it also includes companies from other industries such as retail, healthcare, and telecommunications. Launched in 1971, the NASDAQ Composite Index is recognized for its high concentration of technology-focused businesses. The index contains over three thousand stocks, representing a diverse range of market capitalizations, which allows investors to gauge overall market trends and investor sentiment in the tech industry and beyond. The index is calculated using a market capitalization-weighted methodology, meaning that larger companies have a greater influence on its value. This makes it a popular benchmark for both investors and analysts to track the performance of technology stocks, as well as to assess the overall health of the stock market. For further information about the NASDAQ Composite Index, one may wish to visit the official NASDAQ website.