What it is
The Nasdaq 100 is a stock market index composed of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market. It is a market-capitalization-weighted index, meaning companies with higher market values have a greater influence on the index's performance. The index is heavily weighted towards technology, telecommunications, and biotechnology sectors.
The Nasdaq 100 is often used as a benchmark for the performance of growth stocks and the technology sector. Its constituents include many well-known global innovators. Investors track the Nasdaq 100 to gauge the health of the tech-heavy growth segment of the market. Its performance can be more volatile than broader indices due to its sector concentration.
Why it matters
The Nasdaq 100 is a key indicator for the technology and growth sectors, reflecting the performance of many leading innovative companies.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice