Everything You Need to Know About the Nasdaq Index
Introduction to the Nasdaq 100 Index
Today we will discuss one of the most important global indices and a leading benchmark in the US market: the Nasdaq 100.
Symbol: Nasdaq / US100
The Nasdaq is considered one of the most prominent global indices and carries significant importance for international investors worldwide. It stands alongside the Dow Jones and the S&P 500 as one of the top US indices.
Launched on January 31, 1985, the index includes the 100 largest non-financial companies listed on the US stock exchange. It covers multiple diverse sectors, with a strong focus on technology.
The Nasdaq is one of the most active indices due to its massive liquidity, driven by major global companies such as Nvidia, Microsoft, Meta, and others. It holds the world’s five largest companies by market capitalization, which represent more than 30% of the index’s total value.
Key Sectors in the Index
The index spans multiple industries, with the following being the most significant:
Technology: around 50–55% of the index
Communications: around 15% of the index
Consumer sector: around 12% of the index
Healthcare: around 7% of the index
Major Companies in the Index
NVIDIA
Tesla
Amazon
Meta
Microsoft
Google
Apple
Adobe
AEP
ASML
ADP
Cisco
CCEP
MRVL
Netflix
Trading Hours
Timezone: New York
Main session: 9:30 AM – 4:00 PM
Pre-market: 4:00 AM – 9:30 AM
After-hours: 4:00 PM – 8:00 PM
It is also possible to trade the index via CFDs around the clock, Monday through Friday.
How to Trade and Invest in the Index
1. Contracts for Difference (CFDs) through brokers such as Pepperstone, Exness, and Tickmill.
2. Exchange-Traded Funds (ETFs), for example, the Invesco QQQ ETF.
3. Options.
4. Futures.
Advantages of Trading the Index
1. High liquidity, allowing smooth market entry and exit.
2. Exposure to the world’s largest technology companies, among today’s most critical investments.
3. Sectoral diversification.
4. Multiple ways to trade and invest.
5. Considered a strong index for long-term investing.
Disadvantages of the Index
1. Sensitive to Federal Reserve policy and interest rate news.
2. Affected by economic and geopolitical developments.
3. Heavy concentration in technology, which accounts for more than 50% of the index.
4. Does not fully reflect the strength and performance of the US economy due to the absence of other sectors.
5. Easily influenced by earnings reports of major companies such as Nvidia and Apple.
Tips Before Trading the Index
1. Closely follow Federal Reserve announcements.
2. Track technology companies’ earnings, as they strongly affect the index.
3. Monitor investment funds that specialize in the Nasdaq.
4. Update technical analysis of the index on a daily basis.
5. Apply strong risk and capital management strategies while
