Nasdaq Composite

## What this measures

This is the Nasdaq Composite Index, a market-capitalization-weighted index of more than 3,000 common equities listed on the Nasdaq Stock Market. It includes American depositary receipts, common stocks, real estate investment trusts and tracking stocks, but excludes derivatives, preferred shares, funds, exchange-traded funds and debentures.

## Why it matters

The Nasdaq Composite concentrates technology and growth companies, making it a benchmark for the performance of innovation-driven sectors. A sustained rise signals investor appetite for risk and growth; a sustained fall signals a flight to safety or a repricing of future earnings. Movements in the index affect the cost of equity capital, the wealth of investors and employees holding equity, and the climate for fundraising and acquisitions.

## How to read it

A rising index means the market value of Nasdaq-listed equities is increasing; a falling index means it is decreasing. Compare the level to prior peaks and troughs to assess whether valuations are stretched or depressed, and compare moves to other equity benchmarks to see whether technology and growth stocks are leading or lagging the broader market.

## What it does not say

The index reflects price changes, not the fundamental health of underlying businesses or the sustainability of valuations. It does not indicate whether current prices are justified by earnings, cash flow or economic conditions.

## Source

Published by Nasdaq and reported as daily closing values. Palanor pulls this series from the FRED API nightly.