Nasdaq, Inc. has announced important updates for the Nasdaq-100 Index, effective on December 23, 2024. Three companies—Palantir Technologies, MicroStrategy, and Axon Enterprise—will be newly included in the Index. This yearly reconstitution ensures that the Nasdaq-100, which includes 100 of the largest non-financial companies on the Nasdaq Stock Market, remains current. It serves as a key benchmark for various financial products, such as options and funds, and is notably linked to the Invesco QQQ Trust. As part of this reconstitution, Illumina, Super Micro Computer, and Moderna will be removed from the Index. For more details, visit the company websites of the newly added firms.
Nasdaq Announces 2024 Nasdaq-100 Index Reconstitution
NEW YORK, Dec. 13, 2024 — Nasdaq, Inc. (Nasdaq: NDAQ) has shared the exciting results of its annual reconstitution of the Nasdaq-100 Index® (Nasdaq: NDX®), which will take effect before the Market opens on December 23, 2024. This annual update significantly influences technology stocks and investment strategies across the Market.
New Additions to the Nasdaq-100 Index
The reconstitution will include the addition of three notable companies:
- Palantir Technologies Inc. (Nasdaq: PLTR)
- MicroStrategy Incorporated (Nasdaq: MSTR)
- Axon Enterprise, Inc. (Nasdaq: AXON)
These companies represent key sectors in technology and innovation, reflecting the changing landscape of the Market.
Index Overview and Market Importance
The Nasdaq-100 Index® includes 100 of the largest non-financial companies on the Nasdaq Stock Market®, and it has been a vital benchmark since its launch in 1985. Each year, this index undergoes a rebalancing in December to refine its composition. The Nasdaq-100 serves as a foundation for several financial products, including the popular Invesco QQQ Trust (Nasdaq: QQQ), which aims to match the performance of the index.
Companies Removed from the Index
As part of the reconstitution, three companies are being removed from the index. These include:
- Illumina, Inc. (Nasdaq: ILMN)
- Super Micro Computer, Inc. (Nasdaq: SMCI)
- Moderna, Inc. (Nasdaq: MRNA)
This adjustment is crucial for maintaining the relevance and performance of the Nasdaq-100 Index.
Get to Know the New Members
For investors looking to learn more about the new companies being added to the Nasdaq-100 Index®, you can visit their websites:
The Nasdaq-100 Index remains a critical component of the investment landscape, providing opportunities and benchmarks in the ever-evolving financial markets.
For more information about Nasdaq and its various offerings, visit www.nasdaq.com.
This announcement is essential for investors, analysts, and anyone interested in the stock Market as it reflects significant shifts in the leading technology sector.
What is the Nasdaq-100 Index?
The Nasdaq-100 Index is a stock Market index made up of 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It includes a range of industries like tech, healthcare, and consumer goods.
How often does the Nasdaq-100 Index change?
The Nasdaq-100 Index is reviewed and updated once a year. This usually happens in December, when the index committee looks at the companies to make sure it reflects the top performers accurately.
What happens during the annual changes?
During the annual changes, some companies may be added to or removed from the index. This is based on their Market performance, size, and other financial criteria, ensuring that the index represents leading companies.
Why are these changes important?
These changes are important because they can affect investment strategies and Market performance. Investors and fund managers often use the Nasdaq-100 as a benchmark for growth and performance.
How can I find out about the changes?
You can find out about the annual changes to the Nasdaq-100 Index through financial news websites, the Nasdaq website itself, and stock Market reports. They usually publish detailed lists of the changes and the reasons behind them.
