Nasdaq, Inc. has announced key updates to the Nasdaq-100 Index, effective December 23, 2024. This annual reconstitution will see three new companies—Palantir Technologies Inc., MicroStrategy Incorporated, and Axon Enterprise, Inc.—added to the index. In contrast, Illumina, Super Micro Computer, and Moderna will be removed. The Nasdaq-100 Index, launched in 1985, represents 100 of the largest non-financial firms listed on Nasdaq and serves as a benchmark for various financial products. Additionally, it is the basis for the Invesco QQQ Trust, which aims to mirror the index’s performance. For more details on the newly added companies, visit their respective websites.
Nasdaq Announces Changes to the Nasdaq-100 Index
In a significant update, Nasdaq (Nasdaq: NDAQ) has released the results of its annual reconstitution of the Nasdaq-100 Index®, set to take effect on December 23, 2024. This change highlights the dynamism within the stock Market, showing how adaptively it reflects emerging businesses.
The Nasdaq-100 Index® will welcome three new companies: Palantir Technologies Inc. (Nasdaq: PLTR), MicroStrategy Incorporated (Nasdaq: MSTR), and Axon Enterprise, Inc. (Nasdaq: AXON). Each of these firms represents sectors pivotal to today’s economy, particularly technology and software, which continue to drive innovation.
Historically, the Nasdaq-100 Index® includes 100 of the largest non-financial companies on the Nasdaq Stock Market. The index serves as an important benchmark for various financial products, including options and ETFs. Every December, the index undergoes reconstitution, a process that aligns with the quarterly options expiration.
This year’s reconstitution will also see the removal of Illumina, Inc. (Nasdaq: ILMN), Super Micro Computer, Inc. (Nasdaq: SMCI), and Moderna, Inc. (Nasdaq: MRNA). The adjustments reflect the changing landscape of the Market and ensure the index remains representative of leading industries.
Investors looking to track or invest in the performance represented by the Nasdaq-100 Index® can consider the Invesco QQQ Trust (Nasdaq: QQQ). This trust aims to deliver results aligned with the index’s performance, presenting a valuable opportunity for both individual and institutional investors.
For more details about the companies being added to the Nasdaq-100 Index®, visit their respective websites:
- Palantir Technologies Inc. – palantir.com
- MicroStrategy Incorporated – microstrategy.com
- Axon Enterprise, Inc. – axon.com
Overall, the changes to the Nasdaq-100 Index® underscore the growth and evolution of the Market, reflecting new opportunities for investors and a shift towards technology-driven sectors.
Keywords: Nasdaq-100 Index, investment opportunities, stock Market trends.
What is the Nasdaq-100 Index?
The Nasdaq-100 Index includes 100 of the largest non-financial companies traded on the Nasdaq Stock Market. It’s a good way to see how big tech and other major companies are doing.
How often does the Nasdaq-100 Index change?
The Nasdaq-100 Index is reviewed once a year, usually in December. Some companies may be added or removed based on their performance.
How are companies chosen for the Nasdaq-100 Index?
Companies are selected based on factors like Market capitalization, liquidity, and their sector. They should be top performers in their field to stay in the index.
What happens when a company is removed from the Nasdaq-100 Index?
When a company is taken out, it is replaced with another company that meets the index’s criteria. This keeps the index up-to-date with the best performers.
Why is it important to know about changes in the Nasdaq-100 Index?
Changes to the Nasdaq-100 Index can impact investors and the stock Market. It helps to understand which companies are leading the Market and influences investment decisions.
