The NASDAQ Composite tracks thousands of stocks listed on Nasdaq, spanning large, mid-sized and smaller companies. It is weighted by market capitalization, so larger companies have more influence. Technology has a substantial presence, alongside financials, healthcare and consumer businesses. Its coverage is broader than the NASDAQ 100, which focuses on large non-financial companies, making it a widely followed measure of the Nasdaq market.
History and development
The Nasdaq Composite dates to the market's launch in 1971, with February 5, 1971, set to 100. It brings together a broad universe of Nasdaq-listed companies. Unlike the later Nasdaq-100's selection of large non-financial firms, the Composite follows a wider cross-section of the market's development.
References: Nasdaq: Composite · Federal Reserve Bank of St. Louis: index series
Comparing charts on this board
Begin with the Nasdaq-100. Its lead over the Composite highlights large non-financial leadership; Composite outperformance invites examination of companies outside the 100. The shared Nasdaq name conceals a useful difference in scope.
Add the Russell 2000 to see whether that difference also appears across US small caps. Separate sessions where the Composite and Russell lead together from those led only by the 100.
Related charts: NASDAQ 100 · Russell 2000 · S&P 500
Official references: Nasdaq: Composite