The Nasdaq 100 is an index of the 100 largest non-financial companies listed on the Nasdaq stock exchange. Technology and technology-related businesses make up well over half of it, so it is often called the tech index. Brokers list CFDs on it under names such as US100, NAS100 or USTEC. It usually moves further than the S&P 500 in both directions and is more sensitive to interest rates.
Key takeaways
- The index excludes banks and other financial companies by rule.
- It is weighted by market value with limits on the largest holdings, and was specially rebalanced in July 2023 when concentration became too high.
- The Nasdaq 100 is not the Nasdaq Composite, which contains more than 3,000 stocks.
- Growth companies’ valuations depend on profits far in the future, which makes the index react strongly to bond yields.
- Results from a handful of very large companies drive the index during earnings season.
| Tracks | Nasdaq 100 index |
|---|---|
| Constituents | 100 largest non-financial companies on Nasdaq |
| Launched | 31 January 1985 |
| Weighting | Modified market capitalisation, with caps on the largest weights |
| Reconstituted | Annually in December; rebalanced quarterly |
| Cash session | 09:30–16:00 New York |
| Common broker symbols | US100, NAS100, USTEC |
| Symbol at Marketsall | US100 |
What is the Nasdaq 100?
Nasdaq is a stock exchange; the Nasdaq 100 is one index built from companies listed on it. Inclusion is based mainly on size, and the company must not be in the financial sector. The list is reviewed every December. Because many of the world’s largest technology companies chose to list on Nasdaq, the index is dominated by them, along with large consumer, healthcare and communications names.
Nasdaq 100 vs S&P 500 vs Nasdaq Composite
| Feature | Nasdaq 100 | S&P 500 | Nasdaq Composite |
|---|---|---|---|
| Number of companies | 100 | About 500 | More than 3,000 |
| Where they are listed | Nasdaq only | NYSE and Nasdaq | Nasdaq only |
| Financial companies | Excluded | Included | Included |
| Technology weight | Well over half | About a third | About half |
| Typical volatility | Higher | Lower | Higher |
| Common CFD symbol | US100 | US500 | Rarely offered |
| Read more | This guide | US500 guide | S&P 500 vs Nasdaq 100 vs Dow Jones |
The two main indices share their largest members, so they are highly correlated. Holding both in the same direction is close to holding one larger position; see correlated positions.
Why is the Nasdaq 100 so sensitive to interest rates?
A share is worth the present value of the profits the company is expected to earn. For a fast-growing company most of those profits lie many years ahead. The further away the profits, the more their present value changes when the discount rate changes, and the discount rate follows bond yields. When yields rise sharply, growth shares tend to fall more than the wider market; when yields fall, they tend to rise more. In 2022, as the Federal Reserve raised rates rapidly, the Nasdaq 100 fell by about a third, considerably more than the S&P 500. The mechanism is explained in how interest rates affect stocks.
What moves the Nasdaq 100?
| Driver | How it tends to work | What to watch |
|---|---|---|
| Mega-cap earnings | A few companies carry a large share of the index; their results and guidance set the tone. | earnings reports, earnings season |
| Bond yields | Rising yields weigh on growth valuations; falling yields support them. | US 10-year yield, FOMC meetings |
| Inflation and jobs data | They move rate expectations, and the index with them. | US CPI, Non-Farm Payrolls |
| Technology cycles | Spending on chips, cloud and artificial intelligence drives revenue expectations. | Capital expenditure plans, semiconductor sales |
| Risk sentiment | The index falls more than the market in a sell-off and often recovers faster. | the VIX, risk-on vs risk-off |
What was the 2023 special rebalance?
Index rules limit how much weight the largest companies can hold in aggregate. By mid-2023 a small group had grown so large that the limit was breached, and Nasdaq carried out a special rebalance in July 2023, only the second in the index’s history, to reduce their combined weight. It is a reminder that the index is a rules-based product, and that the rules can change its composition between scheduled reviews.
See index CFD trading hours and why stocks move so much after earnings.
What it costs to trade the Nasdaq 100 as a CFD
A Nasdaq 100 CFD tracks the level of the index; no shares are owned. See what a CFD is and index trading.
| Cost | When it applies | Note for the Nasdaq 100 |
|---|---|---|
| Spread | Every trade, at entry | Tightest in the US cash session; wider overnight and after the close on earnings days |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Charged daily on positions held past the rollover. |
| Dividend adjustment | Cash-based index CFDs | Smaller than for the US500, because many constituents pay low or no dividends. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Most likely after-hours on mega-cap earnings and on inflation data |
Key risks
Higher volatility. Daily moves are typically larger than the US500’s.
Concentration. A single company’s results can move the index by more than 1%.
Rate shocks. Inflation surprises hit growth shares hardest.
After-hours gaps. Earnings arrive after the close. See gap risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
How to trade the Nasdaq 100 at Marketsall
The Nasdaq 100 is listed as US100 on MetaTrader 5 and Web Trader. Read the symbol specification for contract size, margin and swap rates before a first trade; how to read contract specifications on MT5 shows where they are. Practise on a demo account first, keeping in mind the differences covered in demo vs live accounts, and set the position size before opening the ticket with position sizing.
Frequently asked questions
What is the US100?
US100 is a common broker symbol for a CFD that tracks the Nasdaq 100, an index of the 100 largest non-financial companies listed on the Nasdaq exchange. Other brokers call it NAS100 or USTEC. It is heavily weighted towards technology companies.
What is the difference between the Nasdaq 100 and the S&P 500?
The Nasdaq 100 holds 100 non-financial companies listed on Nasdaq and is well over half technology. The S&P 500 holds about 500 companies from both major US exchanges across all sectors, including banks. The Nasdaq 100 is usually more volatile and more sensitive to interest rates.
Is the Nasdaq 100 the same as the Nasdaq Composite?
No. The Nasdaq Composite includes almost every stock listed on the Nasdaq exchange, more than 3,000 companies. The Nasdaq 100 contains only the 100 largest non-financial ones and is the index that futures, ETFs and most CFDs track.
Why does the Nasdaq fall when interest rates rise?
Growth companies are valued on profits expected far in the future. Higher interest rates reduce the present value of those distant profits more than they reduce the value of near-term profits, so technology-heavy indices tend to fall more than the wider market when bond yields rise.
What companies are in the Nasdaq 100?
The index contains the 100 largest non-financial companies listed on Nasdaq, including the biggest US technology, consumer and communications businesses. Membership is reviewed every December, so the current list is best checked on the index provider’s website.
Related reading
Mark the US100's heaviest weeks
Note the report dates of the index's largest members and read stock CFDs and earnings season on how one result can move prices out of hours. Add US CPI and payroll dates from the economic calendar to spot weeks where rate and results risk overlap.
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