Nasdaq Composite.
In plain English
The Nasdaq Composite is an index of every company listed on the Nasdaq Stock Market (roughly 3,000 stocks). Because Nasdaq attracted technology and growth listings in the 1990s and after, the index is dominated by tech: Apple, Microsoft, Nvidia, Amazon, Meta, Google, and Tesla together drive much of its movement. The Nasdaq Composite tends to swing more violently than the S&P 500 in both directions.
01Why it matters
When the news says 'tech got hit today,' the Nasdaq Composite is usually the index they are quoting. It is the cleanest single-number proxy for U.S. tech sentiment, but it is not a balanced market measure. For a diversified U.S. equity benchmark, the S&P 500 is the better reference.
02The math, step by step
From the November 2021 peak to the October 2022 trough, the Nasdaq Composite fell about 36% as interest rates rose and growth-stock valuations compressed. Over the same span, the S&P 500 fell about 25%. The Nasdaq's tech tilt magnified both the drop and the eventual recovery.