Nasdaq Composite: A Leading Indicator of Market Performance
Overview
The Nasdaq Composite Index is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange. It is considered a leading indicator of the performance of the technology sector, as it includes many of the largest and most well-known technology companies in the world.
Key Features
The Nasdaq Composite Index is: * A capitalization-weighted index, meaning that the companies with the largest market capitalizations have a greater influence on the index's value. * Calculated in real-time, so it reflects the latest market prices. * Traded on the Nasdaq stock exchange, which is the second largest stock exchange in the world by market capitalization.
Performance
The Nasdaq Composite Index has performed well over the long term, with an average annual return of over 10% since its inception in 1971. However, it is also known for its volatility, and it has experienced significant declines during periods of economic uncertainty.
Importance
The Nasdaq Composite Index is an important indicator of the health of the technology sector and the overall economy. It is followed by investors, analysts, and policymakers around the world.
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