What is the NASDAQ 100 index?
- The NASDAQ 100 is a stock market index that includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange
- It is represented by a derivative CFD product with the ticker of US100
- It is known for its heavy weighting in technology companies
- The index is market capitalisation-weighted, meaning larger companies carry more weight in the index
- It specifically excludes financial companies, unlike other major U.S. indices
What does NASDAQ stand for?
- NASDAQ stands for the National Association of Securities Dealers Automated Quotations
- The NASDAQ is a U.S.-based stock exchange, known for being the first electronic exchange where buyers and sellers trade stocks via an automated system (rather than traditional in-person trading)
- It is one of the largest stock exchanges in the world, with a strong focus on technology and growth companies
- It is often incorrectly spelt NASDAC due to the similarity in sound between the letters Q and C in the English language
Key features of the NASDAQ
- Technology focus: Many of the world’s leading tech companies, such as Apple, Microsoft, Google and Amazon, are listed on the NASDAQ.
- Electronic trading: It was the first exchange to provide a completely electronic trading system when it was launched in 1971.
- Two indexes: The NASDAQ Composite and NASDAQ-100 indexes track the performance of stocks listed on the exchange.
- Global reach: NASDAQ operates globally and provides services to multiple markets.
What is the history of the NASDAQ 100 index?
- The NASDAQ 100 was created in 1985 by the National Association of Securities Dealers (NASD), which is now part of the NASDAQ stock exchange
- It was initially designed to provide a benchmark for the performance of technology and growth-oriented companies listed on the NASDAQ
- The index started with a base value of 250 and now trades over 21,000 (as of January 2025), driven by the success of tech giants such as Apple Facebook and Microsoft
- As one of the most tech-heavy indices, it’s seen as a leading indicator for the U.S. technology sector and innovation-driven industries
What does the NASDAQ 100 consist of?
- 100 largest non-financial companies: The NASDAQ 100 consists of the 100 largest non-financial companies listed on the NASDAQ stock exchange. This means it excludes companies primarily engaged in financial services, such as banks, insurance companies, and investment firms
- Sector diversity: While technology stocks dominate the NASDAQ 100, the index also includes companies from other sectors, such as consumer services, healthcare, biotechnology, and industrial technology. This diversification provides exposure to a variety of economic sectors
- High concentration in technology: The NASDAQ 100 has a significant concentration of technology stocks, reflecting the dominance of the technology sector in the U.S. economy
- Periodic rebalancing: To ensure that the index accurately reflects the market’s largest non-financial companies, the NASDAQ 100 is rebalanced quarterly. This involves removing companies that no longer meet the inclusion criteria and adding new companies that have grown larger
- Global representation: While the majority of companies in the NASDAQ 100 are U.S.-based, the index also includes a number of international companies
What factors influence the price of the NASDAQ 100?
- U.S. economic data, especially in relation to the tech sector: Economic indicators like GDP growth, unemployment rates, and consumer spending heavily influence market performance. The NASDAQ 100 is especially sensitive to data reflecting the health of the technology industry. Positive economic reports may lead to higher demand for tech stocks, driving up the index, while weak data can trigger a sell-off
- Quarterly earnings reports from its top constituent companies: The earnings performance of key players like Apple, Amazon, and Microsoft can significantly affect the NASDAQ 100. Strong earnings, positive revenue growth, and forward guidance can bolster the index, as investors gain confidence in the growth prospects of these tech giants. On the other hand, earnings misses or warnings about future growth can lead to sharp declines in the index value.
- Global demand for technology products and services: The NASDAQ 100 is closely linked to global technology trends, as many of its top companies are multinational corporations. Global demand for products such as smartphones, software, and cloud services play a critical role in driving the performance of the index. Strong international demand often boosts the share prices of NASDAQ-listed companies, whereas a slowdown in tech demand from major regions like Asia or Europe can dampen the index’s performance.
- Interest rate changes from the U.S. Federal Reserve: Interest rate policy has a direct impact on the valuation of growth stocks, which dominate the NASDAQ 100. Lower interest rates typically benefit these companies as they reduce borrowing costs and encourage investment in growth opportunities. Conversely, when the Federal Reserve increases interest rates, it can lead to a reduction in stock valuations, particularly for tech companies, as future cash flows become less attractive under higher rates.
- Market sentiment and trends in the technology industry: Investor sentiment and broader market trends, especially in the technology sector, heavily influence the NASDAQ 100. Bullish sentiment towards innovation, new product releases, and advancements in tech areas like artificial intelligence, cloud computing, and cybersecurity can drive the index upwards. Alternatively, negative trends like regulatory crackdowns, trade tensions, or declining consumer trust in big tech can have the opposite effect, weighing down the index.
What are some of the most popular stocks that make up the NASDAQ 100?
(This list is current as of January 2025, but is subject to change)
- Apple
- Microsoft
- Nvidia
- Alphabet (Google)
- Amazon
- Tesla
- Meta Platforms (Facebook)
- PepsiCo
- Broadcom
- Adobe
- Intel
- Texas Instruments
- CISCO Systems
- Costco
- Netflix
What are the benefits of trading the NASDAQ 100 index using CFDs?
- This index offers exposure to fast-growing technology and innovation companies
- The NASDAQ 100 has a high potential for returns, driven by the current tech sector growth
- It has huge liquidity due to its large market capitalisation
- Offers a concentrated view of tech-driven market sentiment
- Access to a key U.S. index: The NASDAQ-100 is one of the most influential benchmarks for the tech industry, allowing traders to participate in the performance of major companies driving innovation
24-hour market
Unlike other financial markets, the forex market operates 24-hours a day, five days a week, allowing you to trade at any time that suits you, regardless of your location
Trade long or short
With forex trading,you have the flexibility to profit in both rising (long) and falling (short) markets, giving you more opportunities to make profitable trades
Diverse trading opportunities
With a wide range of currency pairs to choose from, you’ll be able to find trading opportunities in most economic conditions and market types
Access to leverage
Let your trading benefit from high leverage opportunities, allowing you to control a larger position with a smaller capital investment, potentially increasing your profits
Trade long or short
Trading the NASDAQ 100 using CFDs allows you to trade both long and short in both rising and falling markets, offering flexibility in various market conditions
Margin trading
Like other index CFDs, the NASDAQ 100 can be traded using margin, allowing traders to deposit only a fraction of the full value of the trade
Broad market exposure
Trading indices such as the NASDAQ 100 allows you to gain exposure to an entire market, rather than concentrating on an individual stock
Hedging opportunities
CFDs such as the NASDAQ 100 index can be used to hedge existing positions in other related assets
Frequently asked questions
What are the trading hours for the NASDAQ 100 index?
The NASDAQ Stock Market is not open 24/7. It operates during specific hours on weekdays, with pre-market and after-hours trading sessions available. All times below are in UTC:
Regular trading hours
- 2.30pm to 9.00pm UTC (Monday to Friday)
Extended trading hours
- Pre-market: 9.00am to 2.30pm UTC
- After-hours trading: 9.00pm to 1.00am UTC (next day)
Is the NASDAQ open on weekends or holidays?
No, the NASDAQ is closed on weekends. It is also closed on major U.S. holidays, such as:
- New Year’s Day
- Independence Day
- Thanksgiving
- Christmas Day
(If a holiday falls on a Saturday, the exchange may close the preceding Friday; if it falls on a Sunday, it may close the following Monday.)
What is the difference between trading indices and trading share CFDs?
- Diversification: Indices give exposure to a group of stocks, while individual stock CFD trading focuses on just one company
- Volatility: Individual stocks can be more volatile due to company-specific events, whereas indices reflect broader market trends
- Risk: Indices spread the risk across many stocks, while individual CFD stock trading concentrates the risk on one company
- Price movement: Indices tend to move more steadily, while individual stock CFD prices can be more unpredictable and volatile
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NASDAQ Index Chart
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Indices Market Data
This market data list provides a broad overview of indices market performance, including value, change per cent, open, high, low and previous price.
Indices Market News
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USA Economic Calendar
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