what is the nasdaq 100

The Nasdaq 100 Index is a collection of the 100 largest, most actively traded companies listed on the Nasdaq stock exchange. The index includes companies from diverse industries like manufacturing, technology, healthcare, and others, but excludes those in the financial sector, like commercial and investment banks. The Nasdaq 100 is made up of the 100 largest companies by modified market cap that trade on Nasdaq exchanges in the basic materials, consumer discretionary, consumer staples, healthcare, industrials, technology, telecommunications, and utilities sectors. The Nasdaq 100 Index is a modified market value-weighted index, and the Nasdaq-100 Points are the market value weighted impact on the value of the Nasdaq-100 Index. The Nasdaq 100 is used to indicate the overall health of the economy and the specific sectors that are included in the index. Investors can use the performance of the index to understand the performance of a part of the economy and make investment decisions based on that data.