The NASDAQ Composite is a stock market index that represents the performance of all stocks listed on the NASDAQ stock exchange. It is heavily weighted towards technology companies, making it a key indicator of the tech sector's health. Unlike the Dow Jones Industrial Average, the NASDAQ Composite is market-capitalization weighted, meaning that larger companies have a greater influence on the index's overall value. It serves as a benchmark for investors and provides insight into the overall health and direction of the stock market, particularly in the technology and growth sectors.
