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Indexes provide a way to track the performance of a group of stocks, and the tech sector is no exception. In this blog post, we’ll take a look at what index tracks tech stocks, and how you can use it to measure the performance of the sector.
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The Three Main Stock Indices
When it comes to tracking tech stocks, there are three main indices that are commonly followed. The first is the NASDAQ Composite, which tracks over 3,000 stocks and is heavily weighted towards tech companies. The second is the Dow Jones Industrial Average, which tracks 30 large publicly traded companies. The third is the S&P 500, which tracks 500 large publicly traded companies.
The Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average is the stock market index for the New York Stock Exchange (NYSE). It was created by Charles Dow, who also founded The Wall Street Journal. The index is made up of 30 large publicly traded companies in a variety of industries. The components of the DJIA are reviewed and tweaked every few years to ensure that it remains a accurate reflection of the overall market.
The S&P 500 Index is a stock market index for the NASDAQ exchange. It tracks 500 large publicly traded companies in a variety of industries. The components of the S&P 500 are reviewed and tweaked every few years to ensure that it remains a accurate reflection of the overall market.
The tech-heavy NASDAQ Composite Index is a stock market index for the NASDAQ exchange. It tracks over 3,000 publicly traded companies in a variety of industries, with a particular focus on tech stocks. The NASDAQ Composite Index is reviewed and tweaked every few years to ensure that it remains a accurate reflection of the overall market.
The Nasdaq Composite
The Nasdaq Composite (NASDAQ:COMP) tracks the performance of over 3,000 stocks listed on the Nasdaq Stock Market. The index includes all Nasdaq-listed stocks that are not in the Dow Jones Industrial Average or S&P 500 Index. The majority of stocks in the Nasdaq Composite are technology companies.
The S&P 500
The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market. The index includes a wide variety of companies from different sectors, including technology, consumer goods, financials, and healthcare.
What Index Tracks Tech Stocks?
The Nasdaq composite is a stock market index that includes more than 3,000 common stocks and American depositary receipts of companies that are listed on the Nasdaq stock exchange, which is known for being home to many tech companies. The Nasdaq composite is a market value-weighted index, meaning that each company’s share price is multiplied by the number of shares outstanding, and then the sum of those values is divided by a divisor.
The Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States. The tech stocks that are currently includes in the DJIA are Apple, Microsoft, and Intel.
The Nasdaq Composite
The Nasdaq Composite is a stock market index of the common stocks and similar securities listed on the Nasdaq stock market, and it is one of the three major US stock market indices. The composition of the Nasdaq Composite is heavily weighted towards technology and Internet-based companies, although it includes companies from other sectors as well.
The S&P 500
The S&P 500, or the Standard & Poor’s 500, is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. The S&P 500 index components and their weightings are determined by S&P Dow Jones Indices. It differs from other U.S. stock market indices, such as the Dow Jones Industrial Average or the Nasdaq Composite index, because of its diverse membership and weighting methodology.
The Bottom Line
The Dow, the S&P 500, and the Nasdaq Composite are the most popular equity indexes, but there are many others that focus on different aspects of the market. The Russell 2000 is an index of small-cap stocks, while the Wilshire 5000 covers the entire U.S. stock market. For tech stocks specifically, investors can track the S&P 500 Information Technology index, which includes companies like Apple, Microsoft, and Google parent Alphabet. There’s also the Nasdaq 100 index, which is made up of large publicly traded companies that trade on the Nasdaq exchange but isn’t limited to tech stocks.
