NASDAQ is listed in the United States, but it is not a national stock index. The acronym is actually an abbreviation for "National Securities Dealers Automated Quotation Association" and stands for the international new technology industry.
NASDAQ was founded in 1971 by NASD or the Association of Forex Agents in response to the significant developments in the electronics industry that require the establishment of a dedicated market that is different from the global economic market. Today, NASDAQ is still the world's leading electronics market.
The NASDAQ list actually takes place on Wall Street. This index is also the second most important index on the stock exchange and boasts impressive trading volumes. The NASDAQ market has the highest volatility in the market and is a popular asset for daytime or short-term trading.
I've found some useful information about the NASDAQ stock index in this article, but what about the market with the same name?
NASDAQ brokers Market is actually a financial center and stock exchange founded in 1971. Today, the market is the second most important stock market in the United States after the New York Stock Exchange. NASDAQ is also the world's largest electronic stock market. It has been owned by the group of the same name since 2008. Of course, the NASDAQ Index here is a market benchmark stock index, so it tends to measure the rate of return on securities of listed companies.
Today, the total market value of this market is over $ 1 trillion. The market cites stocks of more than 3,200 other companies. The exchange is processed there and continuously on other servers in the room. Therefore, the system installed there can handle more than 900 transactions per second.
Also note that the companies listed on NASDAQ usually come from the computer and internet industries. However, it is also valuable in other areas of activity such as banking, distribution, biotechnology, industry and transportation. Therefore, the index is more representative today than it was in the past.
Finally, it should be noted that the NASDAQ market also serves as a natural exit for venture capital funds. This is a financial model that assumes the risk of loss in almost three-quarters of the situation and supplements the remaining one-quarter. In many cases, it is not a company that can grow quickly.
What can change the price of NASDAQ?
Like the price fluctuations of other global benchmark stock indexes (including CAC 40, FTSE 100, DAX 30), NASDAQ prices can fluctuate depending on market interest in assets. In fact, the price of the Gram 100 Index rises as the volume of transactions increases. Conversely, when stock market management activity declines, prices fall. Please note that we will inform you of the factors that affect the stock index.
Of course, NASDAQ prices are subject to certain stock market events related to NASDAQ listed companies, such as creating new products and services, appointing new directors, and issuing annual or quarterly reports. We are aware that there is a possibility.
NASDAQ prices can also be affected by certain economic factors specific to the United States. For example, monetary policy and interest rates can have a significant impact on this value, and other economic indicators can reflect national performance and indirectly reflect the level of household consumption and business investment. In general, these stock market indices and related markets are directly affected by state-released economic data such as one-month, six-month, or one-month growth, inflation, and employment data especially a year later.
The same is true for political data, as seen in the strong market reaction following Donald Trump's recent tweets and remarks. The President of the United States is also an indicator of market sentiment, has a significant impact on stock prices, and has attracted the attention of many investors. Even in the context of the recent US-China trade war, geopolitical tensions can have a significant impact on the prices of NASDAQ 100 brokers. Depending on the economic situation, these tensions will actually push up and down the price of that value.
Of course, economic and financial crises also have a direct impact on asset prices and usually fall. This was especially true in 2008, when the NASDAQ 100 fell due to the famous subprime mortgage crisis, but even during the coronavirus pandemic, high-tech stocks ultimately lost less than other stocks. It was.
Like all indices, the business cycle is one of the factors that can affect prices. In fact, the cycle of recession, expansion, recovery and overheating tends to repeat, and investors track and use the NASDAQ 100 index. These cycles vary widely from industry to industry.
Finally, another factor that can have a strong impact on the price of the NASDAQ 100 index is related to market sentiment. The data analyzed here is close to psychological order and traders need to have sufficient stock market investment experience to understand how they behave in a particular situation.