The Nasdaq Composite is a stock index that includes all companies listed on the Nasdaq exchange. It is heavily weighted toward technology companies (Apple, Microsoft, Google, Amazon, Nvidia), making it the benchmark index for the US tech sector.
Due to its tech concentration, the Nasdaq tends to be more volatile than the S&P 500, with amplified moves during cycles of optimism or correction in the technology sector.
Frequently asked questions
What is the Nasdaq?
The Nasdaq Composite is an index that includes all companies listed on the Nasdaq exchange. It is heavily weighted toward technology companies.
What is the difference between Nasdaq and S&P 500?
The Nasdaq includes all companies listed on the Nasdaq exchange (with greater tech weight). The S&P 500 includes the 500 largest US companies, regardless of exchange.