What are the key indices of NASDAQ and what do they represent?

NASDAQ features several key indices that track the performance of its listed companies. These indices provide investors with insights into market trends and sector performance. The most notable NASDAQ indices include:

• NASDAQ Composite Index: This index includes all the stocks listed on the NASDAQ exchange, making it a comprehensive measure of the overall performance of NASDAQ. It reflects the performance of more than 3,000 companies, with a significant weighting towards technology and biotech sectors.
• NASDAQ-100 Index: The NASDAQ-100 consists of 100 of the largest non-financial companies listed on NASDAQ. It includes major tech companies such as Apple, Microsoft, and Amazon, and serves as a key indicator of the tech sector’s performance. The index excludes financial companies to provide a focused view of the broader market’s largest players.
• NASDAQ Biotechnology Index (NBI): This index tracks the performance of biotechnology and pharmaceutical companies listed on NASDAQ. It includes firms involved in the research, development, and commercialization of biotech products, reflecting trends and developments in the biotech industry.
• NASDAQ-100 Equal Weighted Index: This variant of the NASDAQ-100 gives each constituent stock an equal weight, regardless of its market capitalization. This approach provides a different perspective on the performance of the top NASDAQ-listed companies, highlighting the impact of smaller companies within the index.
• NASDAQ Financial-100 Index: This index tracks the performance of the 100 largest financial companies listed on NASDAQ. It includes banks, insurance companies, and other financial institutions, offering insights into the financial sector’s performance on the exchange.

Each of these indices serves a specific purpose and provides valuable information about different segments of the market. Investors use these indices to gauge market performance, track sector trends, and make informed investment decisions.