Nasdaq-100

• 1. The 1985 Launch

  ›

  On the 31st of January 1985, the Nasdaq exchange introduced a new benchmark called the Nasdaq-100. This index began with a base price of 250 points and included 100 of the largest non-financial companies listed on the exchange. The original design was simple: it used market capitalization to weight stocks, meaning larger companies had more influence on the index value. Early components included industrial firms, technology startups, retail chains, and biotechnology ventures. By the 31st of December 1993, the index had climbed near 800 points, prompting Nasdaq to reset the base level to 125 for clarity. This adjustment ensured the Nasdaq-100 remained distinct from the broader Nasdaq Composite Index, which tracks over 2,500 stocks.

  12

• 2. Selection Rules And Standards

  ›

  Companies must meet strict criteria to enter the Nasdaq-100. They need to be listed exclusively on Nasdaq Global Select or Global Market tiers. Trading volume must average at least 200,000 shares daily. Firms must file quarterly and annual reports without delay and cannot be in bankruptcy proceedings. Since 2014, companies with multiple stock classes can include all eligible classes if they pass Nasdaq's tests. Before that year, only one class per company counted toward the index. Changes appear publicly via press releases five business days before taking effect. These rules ensure consistent quality and liquidity across all 100 holdings.

  8

• 3. Dot-com Peaks And Crashes

  ›

  The index reached above 4,700 during the dot-com bubble peak in 2000. Within two years, it fell 78% as the bubble burst. A gradual recovery followed, hitting an intraday high of 2,239.51 on the 31st of October 2007. The 2008 financial crisis then drove the index below 2,000. Panic over failing investment banks caused a loss exceeding 10% on the 29th of September 2008. By the 20th of November 2008, the index hit a six-year low of 1,018. Recovery began amid Federal Reserve quantitative easing programs. On the 15th of May 2013, the index closed above 3,000 for the first time since late 2000. By the 18th of October 2013, Google shares surpassed $1,000, pushing the index to its highest levels since the 2000 U.S. elections.

  35

• 4. ETFs And Futures Trading

  ›

  Investors access the Nasdaq-100 through various financial instruments. The Invesco QQQ exchange-traded fund has traded under ticker symbol QQQ since the 23rd of March 2011. Before that date, it used symbols like QQQQ and operated on the American Stock Exchange until the 1st of December 2004. Retail investors often prefer QQQM, known as the "QQQ Mini," which carries lower fees but less liquidity than the main product. Derivatives markets trade futures contracts based on the index code NDX or ND. Smaller E-mini versions use the code NQ. These contracts rank among the most heavily traded at the Chicago Mercantile Exchange. Traders rely on these tools for hedging strategies and speculative positions.

  91011

• 5. Annual Reconstitution Process

  ›

  Each year in December, Nasdaq reviews and updates the index components. Companies are added or removed based on market performance and corporate actions like mergers or delistings. As of the 20th of January 2026, Walmart replaced AstraZeneca after transferring its listing from NYSE to NASDAQ. Other changes include Versant spinning off from Comcast and Alnylam Pharmaceuticals entering the index. Some firms exit due to failing weight requirements or being acquired by other companies. Four original members, Apple, Costco, Intel, and PACCAR, have remained continuously since 1985. Two others, KLA Corporation and Micron Technology, were initial components but left temporarily before returning. This annual cycle keeps the index aligned with current market leaders.

  1617181921