Market Vertical · Tech-Heavy Index
The Nasdaq Composite
The Nasdaq Composite is an index of more than 3,000 companies listed on the Nasdaq stock exchange. It skews heavily toward technology and growth companies — which makes it more volatile than the S&P 500 and more sensitive to interest rate changes. When tech moves, the Nasdaq moves more.
What it covers
The Nasdaq-100 (the version most people track via QQQ) includes the 100 largest non-financial companies on the exchange. Think semiconductors, software, biotech, and internet platforms. The overlap with the Mag 7 is significant — Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta are all Nasdaq-100 components. That concentration means the index amplifies moves in those names.
What moves it
Tech earnings are the dominant driver. Beyond that: the Nasdaq is especially sensitive to interest rate expectations — when rates rise, high-multiple growth stocks reprice down faster than value stocks. AI infrastructure spending cycles, semiconductor supply chains (think TSMC and chip inventory), and regulatory news around big tech are all signals GenHedge monitors.
Key terms
Growth Stock
A company expected to grow revenue and earnings faster than average. Typically trades at higher price-to-earnings ratios because investors are paying for future potential.
Multiple Compression
When a stock's valuation ratio (like P/E) shrinks — usually because interest rates rise or growth expectations fall. The price drops even if earnings stay the same.
Semiconductor Cycle
Chip demand and supply move in cycles. When AI spending spikes, chip demand surges. When inventory builds up, the cycle corrects. Drives Nvidia, AMD, TSMC, and others.
QQQ
The most popular ETF (exchange-traded fund) that tracks the Nasdaq-100. Used as a shorthand for tech-heavy market exposure.
In the newsletter
GenHedge covers the Nasdaq separately from the S&P 500 because the signal is different. A tech-driven day looks different than a broad market day. You get the top Nasdaq mover, the catalyst, and what it means for the broader tech complex.
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