NASDAQ 100 Stock Index

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The index tested down into its MFU-2 price target zone (based on the weekly time frame). On a stock exchange we have something called the average value of all Nasdaq Index companies listed. I see it all the time where there is bad news for specific stocks or stocks overall, and it sets off an avalanche of negative thinking.

The Nasdaq 100 includes the shares of the 100 largest American and international companies as measured by their market capitalization which do not come from the financial sector and which are traded on the largest electronic stock exchange in the USA, the Nasdaq.
Remark that in order to establish this list of the 30 largest companies, the Invesco QQQ Exchange Traded Fund (ETF) has been omitted since it does not represent a company but a fund that tracks the Nasdaq’s evolution, even though its total capitalization would place it within the following Top 30. Besides, note that four of the largest companies listed on the Nasdaq are also part of the 30 components of the Dow index : Microsoft, Apple, Cisco Systems, and Intel.

There are a number of standards a company must reach in order to be listed in this index including: being listed only on the NASDAQ (either the Global Select or Global Market tiers), must be listed for 2 years (or must meet market capitalization standards), have an average daily volume of 200,000 shares, be current in its reports and not be in bankruptcy proceedings.
Unlike shares in a mutual fund that may only be traded at their closing price at the end of the trading day, classic stocks may be traded at any moment, and the price fluctuations during the day can be utilized by investors in speculative activities.
Investors become afraid to buy those other 90 companies, even if they’re largely unrelated to what the biggest companies do. So the index’s over-reliance on its biggest stocks provides an extra measure of riskiness to the Nasdaq, helping to cause or exacerbate market downdraft, such as that of early 2018.

Wall Street entered the penultimate trading day of this holiday shortened week with a fresh buying burst, as equity investors sought to extend a rally that had added more than 1,000 points to the aggregate increase in the Dow Jones Industrial Average so far during this four-day span.
Meanwhile, the Nasdaq Composite Index reflects that — It’s a stock index made up of over 3,000 companies listed on the Nasdaq exchange. Stock indexes are calculated using the stock prices of its member companies. Looking at a bunch of stocks doesn’t necessarily tell you how the market is doing.

The current price of the NASDAQ Composite Index as of June 02, 2020 is 9,608.38. Each represents only a mathematical average that investors use to form an idea of the stock market. Although a stock index is not a tradeable product, but the rise and fall of its value can be traded on.