Nasdaq Composite

In Depth

The Nasdaq Composite is a broad market index that includes virtually all stocks listed on the Nasdaq Stock Market, more than 3,000 securities including common stocks, REITs, and American Depositary Receipts. Because the Nasdaq exchange has historically attracted technology, biotechnology, and growth-oriented companies, the Composite index is heavily weighted toward the technology sector, with the top holdings including Apple, Microsoft, Amazon, Nvidia, and Alphabet. This concentration means the Nasdaq Composite tends to outperform broader indices during technology-driven bull markets and underperform during periods when value stocks or other sectors lead. The index is market-capitalization weighted, so the largest companies have the most influence on its daily movements. First calculated in 1971 with a base value of 100, the Nasdaq Composite surpassed 16,000 by 2021. It is distinct from the Nasdaq-100, which tracks the 100 largest non-financial companies on the exchange. For technology executives and investors, the Nasdaq Composite is the primary benchmark for sector performance. Its movements influence tech hiring plans, startup valuations, IPO timing, and venture capital deployment across the innovation economy.