109-452: The Nasdaq-100 ( ^NDX ) is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index . The stocks' weights in the index are based on their market capitalizations , with certain rules capping the influence of the largest components. It is limited to companies from
218-472: A limit down open on October 24 and reached a 6-year intraday low of 1,018 on November 20, 2008. Amid quantitative easing (QE) from the Federal Reserve and optimism that the financial crisis was ending, the index embarked on a volatile four-year climb higher, closing above 3,000 on May 15, 2013, for the first time since November 15, 2000. By October 18, 2013, with GOOG passing $ 1,000 per share for
327-512: A portmanteau of economic policies from Shinzō Abe , the former Prime Minister of Japan . On 31 October 2014, the BOJ announced the expansion of its bond buying program, to purchase ¥80 trillion of bonds a year. In addition to purchases of bonds, Governor Masaaki Shirakawa also directed the BOJ to begin purchasing corporate shares as well as debt securities in October 2010. The BOJ came up with
436-423: A stock index , or stock market index , is an index that measures the performance of a stock market , or of a subset of a stock market. It helps investors compare current stock price levels with past prices to calculate market performance. Two of the primary criteria of an index are that it is investable and transparent : The methods of its construction are specified. Investors may be able to invest in
545-702: A "farm team" index, the Nasdaq Q-50, representing the next fifty stocks in line to enter the Nasdaq-100. With some exceptions, most stocks that are added to the index come up through the Q-50. In 2011, Nasdaq created the NASDAQ-500 to track the 500 largest stocks on Nasdaq, and the Nasdaq-400, tracking those stocks not included in the Nasdaq-100. Nasdaq has also divided the 100 into two distinct sub-indices;
654-478: A "tapering" of some of the Fed's QE policies contingent upon continued positive economic data. Specifically, he said that the Fed could scale back its bond purchases from $ 85 billion to $ 65 billion a month during the upcoming September 2013 policy meeting. He also suggested that the bond-buying program could wrap up by mid-2014. While Bernanke did not announce an interest rate hike, he suggested that if inflation followed
763-869: A 2% target rate and unemployment decreased to 6.5%, the Fed would likely start raising rates. The stock markets dropped by approximately 4.3% over the three trading days following Bernanke's announcement, with the Dow Jones dropping 659 points between 19 and 24 June, closing at 14,660 at the end of the day on 24 June. On 18 September 2013, the Fed decided to hold off on scaling back its bond-buying program, and announced in December 2013 that it would begin to taper its purchases in January 2014. Purchases were halted on 29 October 2014 after accumulating $ 4.5 trillion in assets. March 2020: QE4. The Federal Reserve began conducting its fourth quantitative easing operation since
872-450: A central bank implements quantitative easing by buying financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield , while simultaneously increasing the money supply . However, in contrast to normal policy, quantitative easing usually involves the purchase of riskier or longer-term assets (rather than short-term government bonds) of predetermined amounts at
981-546: A closed-end fund. On October 23, Align Technology replaced Mattel in the index. On December 8, Nasdaq announced that five companies would enter the index on December 18. They were ASML Holding , Cadence Design Systems , Synopsys , Take-Two Interactive and Workday These companies replaced Akamai Technologies, Discovery Communications – both classes listed in the index (DISCA) (DISCK), Norwegian Cruise Lines, Tractor Supply and Viacom. On July 23, PepsiCo replaced Dish Network . On November 5, NXP Semiconductors rejoined
1090-670: A component of the index, replacing Teva Pharmaceutical Industries , which transferred to the NYSE. On July 23, 2012, Kraft Foods , now known as Mondelez , became a component of the index, replacing Ctrip . Kraft Foods was the fourth component of the Nasdaq-100 to also be included in the Dow Jones Industrial Average , joining Cisco , Intel and Microsoft, but was removed from the DJIA when it subsequently split into two companies. On Wednesday December 12, 2012, Facebook, Inc
1199-514: A currency also directly harms importers and consumers, as the cost of imported goods is inflated by the devaluation of the currency. In the European Union , World Pensions Council (WPC) financial economists have also argued that artificially low government bond interest rates induced by QE will have an adverse impact on the underfunding condition of pension funds, since "without returns that outstrip inflation, pension investors face
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#17327719658191308-454: A four-year period starting in March 2001. The BOJ also tripled the quantity of long-term Japan government bonds it could purchase on a monthly basis. However, the seven-fold increase notwithstanding, current account balances (essentially central bank reserves) being just one (usually relatively small) component of the liability side of a central bank's balance sheet (the main one being banknotes),
1417-400: A higher impact than empirical ones. In Japan, focusing on equity purchases, studies have shown that QE successfully boosted stock prices, but appear to have not been successful in stimulating corporate investment. Quantitative easing may cause higher inflation than desired if the amount of easing required is overestimated and too much money is created by the purchase of liquid assets. On
1526-440: A large scale, over a pre-committed period of time. Central banks usually resort to quantitative easing when interest rates approach zero. Very low interest rates induce a liquidity trap , a situation where people prefer to hold cash or very liquid assets, given the low returns on other financial assets. This makes it difficult for interest rates to go below zero ; monetary authorities may then use quantitative easing to stimulate
1635-560: A lower fee structure, but lacks the liquidity that high-frequency traders need in the traditional QQQ product. QQQ is one of the most actively traded exchange-traded funds in the United States. The Nasdaq-100 is often abbreviated as NDX, NDQ, NAS100 or US100 in the derivatives markets . Its corresponding futures contracts are traded on the Chicago Mercantile Exchange . The regular futures are denoted by
1744-455: A major rebalance of the index to bring it closer to market-cap weighting. The index is rebalanced quarterly only if: The index is rebalanced annually, after the quarterly rebalancing, only if: In addition to its almost complete lack of financial companies, the Nasdaq-100 includes seven companies incorporated outside the United States. Although the S&;P 500 Index includes non-U.S. companies,
1853-511: A peak of $ 2.1 trillion in June 2010. Further purchases were halted as the economy started to improve, but resumed in August 2010 when the Fed decided the economy was not growing robustly. After the halt in June, holdings started falling naturally as debt matured and were projected to fall to $ 1.7 trillion by 2012. The Fed's revised goal became to keep holdings at $ 2.054 trillion. To maintain that level,
1962-420: A percent. This can occur at any time. Companies that are dropped are replaced by those with the largest market value that are not already in the index. Anticipation of these changes can lead to changes in the stock prices of affected companies. The index publicly announces all changes, regardless of when they occur, via press releases at least five business days before the change takes place. The 2018 results of
2071-487: A policy to purchase index ETFs as part of the 2010 Comprehensive Monetary Easing program, which initially placed a cap of ¥450 billion shares with a termination in December 2011. However, later Governor Haruhiko Kuroda replaced the program with the Quantitative and Qualitative Monetary Easing policy which empowered the BOJ to buy ETFs with no cap or termination date, with an increased annual target of ¥1 trillion. The cap
2180-535: A single exchange, and it does not have any financial companies. The financial companies are in a separate index, the Nasdaq Financial-100 . The Nasdaq-100 was launched on January 31, 1985, by the Nasdaq. It created two indices: the Nasdaq-100, which consists of Industrial , Technology , Retail , Telecommunication , Biotechnology , Health Care , Transportation , Media and Service companies, and
2289-547: A spinoff. On March 18, 2013, Kraft Foods replaced Starz. On June 5, 2013, Liberty Media replaced Virgin Media after the companies merged. On June 6, 2013, Netflix replaced Perrigo , which had transferred to the NYSE. On July 15, 2013, Tesla Motors replaced Oracle , which transferred to the NYSE. On July 25, Charter Communications replaced BMC Software . On August 22, Green Mountain Coffee Roasters returned to
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#17327719658192398-442: A stock index that complies with Sharia 's ban on alcohol, tobacco and gambling. Critics of such initiatives argue that many firms satisfy mechanical "ethical criteria" (e.g. regarding board composition or hiring practices) but fail to perform ethically with respect to shareholders (e.g. Enron ). Indeed, the seeming "seal of approval" of an ethical index may put investors more at ease, enabling scams. One response to these criticisms
2507-524: A stock market index by buying an index fund , which is structured as either a mutual fund or an exchange-traded fund , and "track" an index. The difference between an index fund's performance and the index, if any, is called tracking error . Stock market indices may be classified and segmented by the set of underlying stocks included in the index, sometimes referred to as the "coverage". The underlying stocks are typically grouped together based on their underlying economics or underlying investor demand that
2616-490: A total of ¥55 trillion. On 4 April 2013, the Bank of Japan announced that it would expand its asset purchase program by ¥60 trillion to ¥70 trillion per year. The bank hoped to banish deflation and achieve an inflation rate of 2% within two years. This would be achieved through a QE programme worth US$ 1.4 trillion, an amount so large it is expected to double the money supply. This policy has been named Abenomics ,
2725-512: Is a modified capitalization-weighted index . This particular methodology was created in 1998 in advance of the creation of the Nasdaq-100 Index Trust, which holds portions of all Nasdaq-100 firms. The new methodology allowed Nasdaq to reduce the influence of the largest companies and to allow for more diversification. However, the weights of the stocks were not changed after that, which led to more problems. In May 2011, Nasdaq did
2834-512: Is a novel form of monetary policy that came into wide application after the 2007–2008 financial crisis . It is used to mitigate an economic recession when inflation is very low or negative, making standard monetary policy ineffective. Quantitative tightening (QT) does the opposite, where for monetary policy reasons, a central bank sells off some portion of its holdings of government bonds or other financial assets. Similar to conventional open-market operations used to implement monetary policy,
2943-491: Is sometimes described as a last resort to stimulate the economy. A central bank enacts quantitative easing by purchasing, regardless of interest rates, a predetermined quantity of bonds or other financial assets on financial markets from private financial institutions. This action increases the excess reserves that banks hold. The goal of this policy is to ease financial conditions, increase market liquidity , and encourage private bank lending. Quantitative easing affects
3052-472: Is that investors must, in aggregate, hold a capitalization-weighted portfolio anyway. This then gives the average return for all investors; if some investors do worse, other investors must do better (excluding costs). Passive management is an investing strategy involving investing in index funds, which are structured as mutual funds or exchange-traded funds that track market indices. The SPIVA (S&P Indices vs. Active) annual "U.S. Scorecard", which measures
3161-451: Is that trust in the corporate management, index criteria, fund or index manager, and securities regulator, can never be replaced by mechanical means, so " market transparency " and " disclosure " are the only long-term-effective paths to fair markets. From a financial perspective, it is not obvious whether ethical indices or ethical funds will out-perform their more conventional counterparts. Theory might suggest that returns would be lower since
3270-606: The 2007–2008 financial crisis ; on 15 March 2020, it announced approximately $ 700 billion in new quantitative easing via asset purchases to support US liquidity in response to the COVID-19 pandemic . As of mid-summer 2022 this resulted in an additional $ 2 trillion in assets on the books of the Federal Reserve. The Bank of England 's QE programme commenced in March 2009, when it purchased around £165 billion in assets as of September 2009 and around £175 billion in assets by
3379-470: The Bank of Japan (BoJ) to fight domestic deflation in the early 2000s . The BOJ had maintained short-term interest rates at close to zero since 1999. The Bank of Japan had for many years, and as late as February 2001, stated that "quantitative easing ... is not effective" and rejected its use for monetary policy. The Bank of Japan adopted quantitative easing on 19 March 2001. Under quantitative easing,
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3488-619: The Calvert Social Index , Domini 400 Social Index , FTSE4Good Index , Dow Jones Sustainability Index , STOXX Global ESG Leaders Index, several Standard Ethics Aei indices, and the Wilderhill Clean Energy Index. Other ethical stock market indices may be based on diversity weighting (Fernholz, Garvy, and Hannon 1998). In 2010, the Organization of Islamic Cooperation announced the initiation of
3597-460: The Nasdaq Financial-100 , which consists of banking companies , insurance firms , brokerage firms , and Mortgage loan companies. The base price of the index was initially set at 250, but when it closed near 800 on December 31, 1993, the base was reset at 125 the following trading day, leaving the halved Nasdaq-100 price below that of the more commonly known Nasdaq Composite . The first annual adjustments were made in 1993 in advance of options on
3706-505: The Reuters Instrument Code ND, and the smaller E-mini version uses the code NQ. Both are among the most heavily traded futures at the exchange. The index set highs above the 4,700 level at the peak of the dot-com bubble in 2000, but fell 78% during the stock market downturn of 2002 . After a gradual 5-year recovery to an intraday high of 2,239.51 on October 31, 2007, the highest reached since February 16, 2002,
3815-587: The federal funds rate in the US, or the official bank rate in the UK) were either at or close to zero. According to Thomas Oatley, "QE has been the central pillar of post-crisis economic policy." During the peak of the 2007–2008 financial crisis , the US Federal Reserve expanded its balance sheet dramatically by adding new assets and new liabilities without "sterilizing" these by corresponding subtractions. In
3924-550: The federal funds rate near zero "at least through 2015". According to NASDAQ.com, this is effectively a stimulus program that allows the Federal Reserve to relieve $ 40 billion per month of commercial housing market debt risk. Because of its open-ended nature, QE3 has earned the popular nickname of "QE-Infinity". On 12 December 2012, the FOMC announced an increase in the amount of open-ended purchases from $ 40 billion to $ 85 billion per month. On 19 June 2013, Ben Bernanke announced
4033-482: The open market to reach a desired target for the interbank interest rate . However, if a recession or depression continues even when a central bank has lowered interest rates targets to nearly zero, the central bank can no longer lower interest rates — a situation known as the liquidity trap . The central bank may then attempt to stimulate the economy by implementing quantitative easing, that is, by buying financial assets without reference to interest rates. This policy
4142-596: The wealth gap between the wealthy and working class. In the Eurozone, studies have shown that QE successfully averted deflationary spirals in 2013–2014, and prevented the widening of bond yield spreads between member states. QE also helped reduce bank lending cost. However, the real effect of QE on GDP and inflation remained modest and very heterogeneous depending on methodologies used in research studies, which find on GDP comprised between 0.2% and 1.5% and between 0.1 and 1.4% on inflation. Model-based studies tend to find
4251-413: The 1930s. Specifically, banks' excess reserves exceeded 6 percent in 1940, whereas they vanished during the entire postwar period until 2008. Despite this fact, many commentators called the scope of the Federal Reserve quantitative easing program after the 2008 crisis "unprecedented". A policy termed "quantitative easing" (量的緩和, ryōteki kanwa , from 量的 "quantitative" + 緩和 "easing") was first used by
4360-570: The BOJ flooded commercial banks with excess liquidity to promote private lending, leaving them with large stocks of excess reserves and therefore little risk of a liquidity shortage. The BOJ accomplished this by buying more government bonds than would be required to set the interest rate to zero. It later also bought asset-backed securities and equities and extended the terms of its commercial paper -purchasing operation. The BOJ increased commercial bank current account balances from ¥5 trillion to ¥35 trillion (approximately US$ 300 billion) over
4469-616: The Bank of England and the UK Chancellor of the Exchequer in September 2022. Between February 2022 and September 2022, a total of £37.1bn of government bonds matured, reducing the outstanding stock from £875.0bn at the end of 2021 to £837.9bn. In addition, a total of £1.1bn of corporate bonds matured, reducing the stock from £20.0bn to £18.9bn, with sales of the remaining stock planned to begin on 27 September. On 28 September 2022
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4578-451: The Bank of England announced its intention to commence winding down the QE portfolio. Initially this would be achieved by not replacing tranches of maturing bonds, and would later be accelerated through active bond sales. In August 2022 the Bank of England reiterated its intention to accelerate the QE wind down through active bond sales. This policy was affirmed in an exchange of letters between
4687-434: The Bank of England issued a Market Notice announcing its intention to "carry out purchases of long dated gilts in a temporary and targeted way". This was in response to market conditions in which the sterling exchange rate and bond asset pricing were significantly disrupted following a UK government fiscal statement. The Bank stated its announcement would apply to conventional gilts of residual maturity greater than 20 years in
4796-477: The Class C common stock of Google was added to the index as a result of Google's stock split. This meant the index had 101 components. Later in 2014, additional classes of stock from other index companies were added to the index, bringing the number of constituent securities in the index to 107. On December 12, 2014, Nasdaq announced that American Airlines Group , Electronic Arts and Lam Research would be added to
4905-566: The Dow Jones Industrial Average has never included foreign companies. As of June 2024, the index's seven companies incorporated in foreign countries are as follows: Additionally, the Nasdaq-100 is also the only index of the three that has a regularly scheduled re-ranking of its index each year (in December), ensuring that the largest non-financial companies on Nasdaq are accurately included. In 2006, Nasdaq created
5014-526: The ECB resumed buying up eurozone government bonds at a rate of €20 billion in an effort to encourage governments to borrow more and spend in domestic investment projects. In March 2020, to help the economy absorb the shock of the COVID-19 crisis, the ECB announced a €750 billion Pandemic Emergency Purchase Programme (PEPP). The aim of the stimulus package (PEPP) was to lower borrowing costs and increase lending in
5123-419: The Fed bought $ 30 billion in two- to ten-year Treasury notes every month. November 2010: QE2. In November 2010, the Fed announced a second round of quantitative easing, buying $ 600 billion of Treasury securities by the end of the second quarter of 2011. The expression "QE2" became a ubiquitous nickname in 2010, used to refer to this second round of quantitative easing by US central banks. Retrospectively,
5232-672: The Nasdaq-100 Tech follows those components who service the tech sector, and the Nasdaq-100 Ex-Tech, which follows those components that are not considered tech companies. The latter index includes noted e-commerce companies Amazon.com and eBay , which are classified as retailers. This table is current as of the open of trading on November 18, 2024. An up-to-date list is available in the External links section. As of July 2024, 514 companies have been components of
5341-413: The S&P 500 Index, have multiple versions. These versions can differ based on how the index components are weighted and on how dividends are accounted. For example, there are three versions of the S&P 500 Index: price return, which only considers the price of the components, total return, which accounts for dividend reinvestment, and net total return, which accounts for dividend reinvestment after
5450-533: The Swiss franc. Sveriges Riksbank launched quantitative easing in February 2015, announcing government bond purchases of nearly US$ 1.2 billion. The annualised inflation rate in January 2015 was -0.3%, and the bank implied that Sweden's economy could slide into deflation. In early October 2010, the Bank of Japan (BOJ) announced that it would examine the purchase of ¥5 trillion (US$ 60 billion) in assets. This
5559-406: The US has effectively contributed to lower long term interest rates on a variety of securities as well as lower credit risk. This boosted GDP growth and modestly increased inflation. A predictable but unintended consequence of the lower interest rates was to drive investment capital into equities, thereby inflating the value of equities relative to the value of goods and services, and increasing
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#17327719658195668-541: The beginning of gilt sale operations would be postponed to 31 October 2022. The European Central Bank engaged in large-scale purchase of covered bonds in May 2009, and purchased around €250 billion worth of sovereign bonds from targeted member states in 2010 and 2011 (the SMP Programme). However, until 2015 the ECB refused to openly admit they were doing quantitative easing. In a dramatic change of policy, following
5777-593: The company's interests in Latin America. Both tracking stocks were added to the index the same day. On July 2, Kraft Foods merged with Heinz , becoming Kraft Heinz . Catamaran Corporation was removed from the index after the close of trading on July 23, after going private. JD.com replaced it on July 29. DirecTV was removed from the index on July 24 due to its acquisition by AT&T and replaced by BioMarin Pharmaceutical on July 27. Sigma-Aldrich
5886-420: The deduction of a withholding tax . The Wilshire 4500 and Wilshire 5000 indices have five versions each: full capitalization total return, full capitalization price, float-adjusted total return, float-adjusted price, and equal weight. The difference between the full capitalization, float-adjusted, and equal weight versions is in how index components are weighted. One argument for capitalization weighting
5995-416: The economy rather than trying to lower the interest rate. Quantitative easing can help bring the economy out of recession and help ensure that inflation does not fall below the central bank's inflation target . However QE programmes are also criticized for their side-effects and risks, which include the policy being more effective than intended in acting against deflation (leading to higher inflation in
6104-473: The economy through several channels: The Bank of Japan introduced QE from March 19, 2001, until March 2006, after having introduced negative interest rates in 1999. Most western central banks adopted similar policies in the aftermath of the 2007–2008 financial crisis . The US Federal Reserve belatedly implemented policies similar to the recent quantitative easing during the Great Depression of
6213-474: The end of October 2009. Five further tranches of bond purchases between 2009 and November 2020 brought the peak QE total to £895 billion. The Bank imposed a number of constraints on the QE policy, namely, that it would not buy more than 70% of any issue of government debt; and that it would only buy traditional (non-index-linked) debt, with a maturity of more than three years. Originally, the bonds eligible for purchase were limited to UK government debt, but this
6322-631: The euro area. At the beginning of 2013, the Swiss National Bank had the largest balance sheet relative to the size of its economy. It was responsible for, at close to 100% of Switzerland's national output. A total of 12% of its reserves were in foreign equities. By contrast, the US Federal Reserve's holdings equalled about 20% of US GDP, while the European Central Bank's assets were worth 30% of GDP. The SNB's balance sheet has increased massively due to its QE programme, to
6431-518: The extent that in December 2020, the US treasury accused Switzerland of being a " currency manipulator ". The US administration recommended Switzerland to increase the retirement age for Swiss workers to reduce saving assets by the Swiss Social Security administration , in order to boost domestic demand and reduce the necessity to maintain QE to stabilize the parity between the dollar and
6540-509: The first time, the index had made a closing high of 3,353.88 and intraday high of 3,355.63, its highest levels since the 2000 United States elections and more than triple the 2008 low. The following table shows the annual development of the Nasdaq-100 since 1985. The Nasdaq has refined a series of stringent standards which companies must meet to be indexed. Those standards include: Additionally, since 2014, companies with multiple classes of stock are allowed to have multiple classes included in
6649-415: The increase in bank reserves may not immediately increase the money supply if held as excess reserves, the increased reserves create the danger that inflation may eventually result when the reserves are loaned out. QE benefits debtors; since the interest rate has fallen, there is less money to be repaid. However, it directly harms creditors as they earn less money from lower interest rates. Devaluation of
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#17327719658196758-474: The index corrected below the 2,000 level in early 2008 amid the late-2000s recession , the United States housing bubble and the financial crisis of 2007–2008 . Panic focusing on the failure of the investment banking industry culminated in a loss of more than 10% on September 29, 2008, subsequently plunging the index firmly into a bear market . The Nasdaq-100, with much of the broader market, experienced
6867-479: The index following its failed acquisition by Qualcomm , replacing CA, which merged with Broadcom. On November 19, Xcel Energy replaced Dentsply Sirona. On December 14, Nasdaq announced that 6 stocks will join the index on December 24: Advanced Micro Devices , lululemon Athletica , NetApp , United Continental Holdings , Verisign and Willis Towers Watson , replacing Express Scripts, Hologic, Qurate Retail Group, Seagate Technology, Shire and Vodafone. On March 19,
6976-410: The index is rebalanced once a year, in December, when Nasdaq reviews its components, compares them with those not in the index, re-ranks all eligible companies and makes the appropriate adjustments. There are two tools the Nasdaq uses to determine the market values of companies for the annual review: Those components that are in the top 100 of all eligible companies at the annual review are retained in
7085-689: The index is seeking to represent or track. For example, a 'world' or 'global' stock market index—such as the MSCI World or the S&;P Global 100 —includes stocks from all over the world, and satisfies investor demand for an index for broad global stocks. Regional indices that make up the MSCI World index, such as the MSCI Emerging Markets index, include stocks from countries with a similar level of economic development, which satisfies
7194-421: The index on December 21 due to annual re-ranking: Ctrip , Endo International , Expedia Group , Maxim Integrated Products , Norwegian Cruise Line , T-Mobile US and Ulta Beauty , replacing C. H. Robinson Worldwide , Expeditors International , Garmin , Keurig Green Mountain , Staples , VimpelCom and Wynn Resorts . Two Liberty Media (Liberty Global plc) tracking stocks (LILA) and (LILAK) were removed from
7303-970: The index over time for various reasons. DirecTV replaced BEA Systems on April 30, 2008 CA Technologies replaced Tellabs on May 19, 2008. FLIR Systems replaced UAL Corporation on July 21, 2008, and on November 10, 2008 Seagate Technology replaced Monster Worldwide . On December 22, 2008, Nasdaq added the following companies to the Nasdaq-100 index: Automatic Data Processing , First Solar , Life Technologies , Ross Stores , Maxim Integrated Products , Illumina , Pharmaceutical Product Development , O'Reilly Auto Parts , Urban Outfitters , J. B. Hunt and Warner Chilcott , replacing Amylin Pharmaceuticals , Cadence Design Systems , Discovery Communications , Lamar Advertising Company , Leap Wireless International , Level 3 Communications , PetSmart , SanDisk , Sirius XM Radio , Virgin Media and Whole Foods Market . On January 20, 2009, News Corporation
7412-550: The index that would trade at the Chicago Board Options Exchange in 1994. Foreign companies were first admitted to the Nasdaq-100 in January 1998, but had higher standards to meet before they could be added. Those standards were relaxed in 2002, while standards for domestic firms were raised, ensuring that all companies met the same standards. The Invesco QQQ , an exchange-traded fund sponsored and overseen since March 21, 2007, by Invesco , trades under
7521-851: The index, and Zoom Video Communications replaced Willis Towers Watson on April 30. On June 22, DocuSign replaced United Airlines Holdings , and other replacements that year included Moderna replacing CoStar Group on July 20, Pinduoduo replacing NetApp on August 24, and Keurig Dr Pepper replacing Western Digital on October 19. On December 21, six companies joined the index: American Electric Power , Atlassian , Marvell Technology Group , Match Group , Okta and Peloton Interactive . They replaced BioMarin Pharmaceutical , Citrix Systems , Expedia Group , Liberty Global (both classes of shares), Take-Two Interactive and Ulta Beauty . On July 21, Honeywell replaced Alexion Pharmaceuticals , following its acquisition by AstraZeneca . On August 26, Crowdstrike replaced Maxim Integrated Products , which
7630-538: The index, effective December 22, replacing Expedia Group , F5 Networks and Maxim Integrated Products . On March 23, Walgreens Boots Alliance replaced Equinix in the index. Although it was still listed on NASDAQ, Equinix converted into a real estate investment trust , making it ineligible for inclusion in the Nasdaq-100, but it did gain eligibility for the Nasdaq Financial-100. On July 1, Liberty Interactive created two new tracking stocks, tracking
7739-509: The index, leaving 106 separate components. On February 1, Avago Technologies changed its name to Broadcom . On February 22, CSX Corporation replaced KLA-Tencor as a member of the index. On March 16, NetEase replaced SanDisk as a member of the index. On April 18, Liberty Media established two tracking stocks (BATRA), (BATRK) to follow the performance of its investment in the Atlanta Braves . On June 20, Dentsply Sirona returned to
7848-439: The index, provided they meet Nasdaq's criteria. Prior to 2014, companies were limited to one class of stock in the index (usually the one with the larger market capitalization). While the composition of the Nasdaq-100 changes in the case of delisting (such as transferring to another exchange, mergers and acquisitions , or declaring bankruptcy , and in a few cases, being delisted by Nasdaq for failing to meet listing requirements),
7957-551: The index, replacing Life Technologies . On October 29, VimpelCom replaced Dell . On November 18, Marriott International was added to the index, replacing Randgold Resources . On December 23, 2013, 10 changes to the index took place. The five companies joining the index were DISH Network Corporation , Illumina , NXP Semiconductors , Tractor Supply Company and TripAdvisor . The five companies that were dropped were Fossil Group , Microchip Technology , Nuance Communications , Sears Holdings and Dentsply . On April 3, 2014,
8066-551: The index, replacing Joy Global, which transferred its listing to the NYSE. Perrigo had been a member of the index in the 1990s, being dropped in 1996. On December 19, 2011, five companies joined the Nasdaq-100 index due to the annual reranking of the index: Avago Technologies , Fossil Group , Monster Beverage , Nuance Communications and Randgold Resources , replacing FLIR Systems , Illumina , NII Holdings , Qiagen and Urban Outfitters . On April 23, 2012, Texas Instruments replaced First Solar . On May 30, 2012, Viacom became
8175-514: The index, replacing four Liberty Media tracking stocks (LMCA), (LMCK), (BATRA), (BATRK). On July 18, Microchip Technology returned to the index, replacing Endo International. On October 19, Shire PLC replaced Linear Technology in the index. On December 9, the annual re-ranking of the index was announced, resulting in four changes. Joining the index December 19 were Cintas , Hasbro , Hologic and KLA-Tencor . Bed Bath & Beyond , NetApp , Stericycle and Whole Foods Market were dropped from
8284-469: The index. On February 1, Tesla Motors changed its corporate name to simply Tesla. On February 7, J. B. Hunt replaced NXP Semiconductors in the index. On March 20, Idexx Laboratories replaced SBA Communications in the index after SBA converted to a REIT, rendering it ineligible for inclusion. On April 24, Wynn Resorts replaced TripAdvisor . On June 19, MercadoLibre replaced Yahoo! Inc due to its acquisition by Verizon and subsequent conversion to
8393-421: The index. Of these, only four, Apple, Costco (through its merger in 1993 with Price Club , with Costco, as a separate entity, not becoming a component until at least 1989), Intel and PACCAR, have been components, continuously, since the first dissemination of the index in 1985. Two other current components, KLA Corporation and Micron Technology, were also components when the index started, but have been removed from
8502-426: The index. Those ranked 101 to 125 are retained only if they were in the top 100 of the previous year's annual review. If they fail to move into the top 100 in the following year's review, they are dropped. Those not ranked in the top 125 are dropped regardless of the previous year's rank. The index also drops a company if, at the end of two consecutive months, it fails to have an index weighting of at least one-tenth of
8611-465: The inflationary pressures would be equalized. This can only happen if member banks actually lend the excess money out instead of hoarding the extra cash. During times of high economic output, the central bank always has the option of restoring reserves to higher levels through raising interest rates or other means, effectively reversing the easing steps taken. Economists such as John Taylor believe that quantitative easing creates unpredictability. Since
8720-594: The investible universe is artificially reduced and with it portfolio efficiency. (It conflicts with the Capital Asset Pricing Model, see above.) On the other hand, companies with good social performances might be better run, have more committed workers and customers, and be less likely to suffer reputation damage from incidents (oil spillages, industrial tribunals, etc.) and this might result in lower share price volatility , although such features, at least in theory, will have already been factored into
8829-473: The investor demand for an index for emerging market stocks that may share similar economic fundamentals. The coverage of a stock market index is separate from the weighting method. For example, the S&P 500 market-cap weighted index covers the 500 largest stocks from the S&P Total Market Index, but an equally weighted S&P 500 index is also available with the same coverage. Stock market indices may be categorized by their index weight methodology, or
8938-407: The literature on the topic has grown over time, it has also been shown that central banks' own research on the effectiveness of quantitative easing tends to be optimistic in comparison to research by independent researchers, which could indicate a conflict of interest or cognitive bias in central bank research. Several studies published in the aftermath of the crisis found that quantitative easing in
9047-514: The longer term), or not being effective enough if banks remain reluctant to lend and potential borrowers are unwilling to borrow. Quantitative easing has also been criticized for raising financial asset prices, contributing to inequality. Quantitative easing was undertaken by some major central banks worldwide following the 2007–2008 financial crisis , and again in response to the COVID-19 pandemic . Standard central bank monetary policies are usually enacted by buying or selling government bonds on
9156-600: The market open: Vodafone , Mattel , BMC Software , Mylan , Qiagen , SanDisk and Virgin Media . These stocks replaced Akamai Technologies , Hansen Natural , IAC/InterActiveCorp , Liberty Global , Pharmaceutical Product Development , Ryanair and Steel Dynamics . On December 20, 2010, seven companies were added to the Nasdaq-100 index: F5 Networks , Akamai Technologies , Netflix , Micron Technology , Whole Foods Market , Ctrip and Dollar Tree , replacing Cintas , Dish Network , Foster Wheeler , Hologic , J. B. Hunt , Logitech and Patterson Companies . These were
9265-453: The market price of the stock. The empirical evidence on the performance of ethical funds and of ethical firms versus their mainstream comparators is very mixed for both stock and debt markets. Quantitative easing Quantitative easing ( QE ) is a monetary policy action where a central bank purchases predetermined amounts of government bonds or other financial assets in order to stimulate economic activity. Quantitative easing
9374-447: The new Jackson Hole Consensus , on 22 January 2015 Mario Draghi , President of the European Central Bank, announced an "expanded asset purchase programme", where €60 billion per month of euro-area bonds from central governments, agencies and European institutions would be bought. Beginning in March 2015, the stimulus was planned to last until September 2016 at the earliest with a total QE of at least €1.1 trillion. Mario Draghi announced
9483-416: The only changes made to the index that year and the fewest since 1997. On April 4, 2011, Alexion Pharmaceuticals replaced Genzyme before the market open. On May 27, 2011, Green Mountain Coffee Roasters replaced Millicom International Cellular after Millicom (MICC) withdrew its Nasdaq listing. On July 15, 2011, Sirius XM Radio replaced Cephalon in the index, and on December 6, 2011, Perrigo joined
9592-415: The other hand, QE can fail to spur demand if banks remain reluctant to lend money to businesses and households. Even then, QE can still ease the process of deleveraging as it lowers yields. However, there is a time lag between monetary growth and inflation; inflationary pressures associated with money growth from QE could build before the central bank acts to counter them. Inflationary risks are mitigated if
9701-452: The performance of indices versus actively managed mutual funds, finds the vast majority of active management mutual funds underperform their benchmarks, such as the S&P 500 Index, after fees. Unlike a mutual fund, which is priced daily, an exchange-traded fund is priced continuously and is optionable . Several indices are based on ethical investing , and include only companies that meet certain ecological or social criteria, such as
9810-476: The policy was initially to ease liquidity constraints in the sterling reserves system, but evolved into a wider policy to provide economic stimulus. Another side effect is that investors will switch to other investments, such as shares, boosting their price and thus encouraging consumption. In 2012 the Bank estimated that quantitative easing had benefited households differentially according to the assets they hold; richer households have more assets. In February 2022
9919-448: The programme would continue: "until we see a continued adjustment in the path of inflation", referring to the ECB's need to combat the growing threat of deflation across the eurozone in early 2015. In March 2016, the ECB increased its monthly bond purchases to €80 billion from €60 billion and started to include corporate bonds under the asset purchasing programme and announced new ultra-cheap four-year loans to banks. From November 2019,
10028-493: The re-ranking and rebalancing were announced on December 14, with the changes effective the morning of December 24, coinciding with the expiration of options on December 21. The Nasdaq-100 is frequently confused with the Nasdaq Composite Index. The latter index (often referred to simply as "The Nasdaq" ) includes the stock of every company that is listed on Nasdaq (more than 3,000 altogether). The Nasdaq-100
10137-423: The real value of their savings declining rather than ratcheting up over the next few years". In addition to this, low or negative interest rates create disincentives for saving. In a way this is an intended effect, since QE is intended to spur consumer spending . In Europe, central banks operating corporate quantitative easing (i.e., QE programmes that include corporate bonds) such as the European Central Bank or
10246-512: The resulting peak increase in the BOJ's balance sheet was modest, compared to later actions by other central banks. The Bank of Japan phased out the QE policy in March 2006. After the 2007–2008 financial crisis , policies similar to those undertaken by Japan were used by the United States, the United Kingdom, and the Eurozone. Quantitative easing was used by these countries because their risk-free short-term nominal interest rates (termed
10355-509: The round of quantitative easing preceding QE2 was called "QE1". September 2012: QE3. A third round of quantitative easing, "QE3", was announced on 13 September 2012. In an 11–1 vote, the Federal Reserve decided to launch a new $ 40 billion per month, open-ended bond purchasing program of agency mortgage-backed securities. Additionally, the Federal Open Market Committee (FOMC) announced that it would likely maintain
10464-498: The rules on how stocks are allocated in the index, independent of its stock coverage. For example, the S&P 500 and the S&P 500 Equal Weight each cover the same group of stocks, but the S&P 500 is weighted by market capitalization , while the S&P 500 Equal Weight places equal weight on each constituent. Some common index weighting methods are listed below. In practice, many indices will impose constraints, such as concentration limits, on these rules. Some indices, such as
10573-536: The same period, the United Kingdom also used quantitative easing as an additional arm of its monetary policy to alleviate its financial crisis . The U.S. Federal Reserve System held between $ 700 billion and $ 800 billion of Treasury notes on its balance sheet before the recession. November 2008: QE1. In late November 2008, the Federal Reserve started buying $ 600 billion in mortgage-backed securities . By March 2009, it held $ 1.75 trillion of bank debt, mortgage-backed securities, and Treasury notes; this amount reached
10682-410: The secondary market. The existing constraints applicable to QE bond purchases would continue to apply. The funding of the purchases would be met from central bank reserves, but would be segregated in a different portfolio from existing asset purchases. The Bank also announced that its annual £80bn target to reduce the existing QE portfolio remained unchanged but, in the light of current market conditions,
10791-407: The system's economy outgrows the pace of the increase of the money supply from the easing. If production in an economy increases because of the increased money supply, the value of a unit of currency may also increase, even though there is more currency available. For example, if a nation's economy were to spur a significant increase in output at a rate at least as high as the amount of debt monetized
10900-523: The ticker Nasdaq : QQQ . It was formerly called Nasdaq-100 Trust Series 1. On December 1, 2004, it was moved from the American Stock Exchange , where it had the symbol QQQ, to the Nasdaq , and given the new ticker symbol QQQQ, sometimes called the "quad Qs" by traders. On March 23, 2011, Nasdaq changed its symbol back to QQQ. Retail buy and hold investors might prefer to purchase Invesco's similar Nasdaq: QQQM, or "QQQ Mini" which has
11009-506: The two classes of stock of Fox Corporation replaced the two classes of stock of 21st Century Fox . On November 21, Exelon replaced Celgene . On December 13, Nasdaq announced that as a result of the annual re-ranking of the index, six companies would join December 23: Ansys , CDW , Copart , CoStar Group , Seattle Genetics and Splunk , replacing Hasbro , Henry Schein , J.B. Hunt , Mylan , NortonLifeLock and Wynn Resorts . On April 20, Dexcom replaced American Airlines Group in
11118-399: Was "very little impact on the economy". Bank deposits in the Fed increased by nearly $ 4 trillion during QE1-3, closely tracking Fed bond purchases. A different assessment has been offered by Federal Reserve Governor Jeremy Stein , who has said that measures of quantitative easing such as large-scale asset purchases "have played a significant role in supporting economic activity". While
11227-533: Was acquired by Analog Devices . On December 10, 2021, Nasdaq announced that six new companies would join the index prior to the market open on December 20, 2021. They are Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS). They replaced CDW (CDW), Cerner (CERN), Check Point (CHKP), Fox Corporation (FOXA/FOX), Incyte (INCY), and Trip.com (TCOM). On January 24, Old Dominion Freight Line replaced Peloton . Stock market index In finance ,
11336-406: Was added to the index, replacing Focus Media Holding , which did not meet the minimum monthly weight requirements. On July 17, 2009, Cerner replaced Sun Microsystems after Sun Microsystems was acquired by Oracle . On October 29, 2009, Priceline.com replaced Juniper Networks after Juniper transferred its listing to the NYSE. On December 21, 2009, seven stocks joined the Nasdaq-100 index before
11445-795: Was added to the index, replacing Infosys , which transferred its listing to the NYSE . On December 24, 2012, 20 changes to the index took place. The ten companies joining the index were Analog Devices , Catamaran Corporation , Discovery Communications , Equinix , Liberty Global , Liberty Media , Regeneron Pharmaceuticals , SBA Communications , Verisk Analytics and Western Digital . The ten companies being dropped were Apollo Group , Electronic Arts , Flextronics , Green Mountain Coffee Roasters , Lam Research , Marvell Technology Group , Netflix , Research in Motion , VeriSign and Warner Chilcott . On January 15, 2013, Starz replaced Liberty Media after
11554-456: Was an attempt to push down the value of the yen against the US dollar to stimulate the domestic economy by making Japanese exports cheaper; however, it was ineffective. On 4 August 2011 the BOJ announced a unilateral move to increase the commercial bank current account balance from ¥40 trillion (US$ 504 billion) to a total of ¥50 trillion (US$ 630 billion). In October 2011, the bank expanded its asset purchase program by ¥5 trillion ($ 66bn) to
11663-490: Was later relaxed to include high quality commercial bonds. QE was primarily designed as an instrument of monetary policy. The mechanism required the Bank of England to purchase government bonds on the secondary market, financed by the creation of new central bank money . This would have the effect of increasing the asset prices of the bonds purchased, thereby lowering yields and dampening longer term interest rates and making it cheaper for businesses to raise capital. The aim of
11772-567: Was raised multiple times to over ¥19 trillion by March 2018. And in March 16, 2020, following the Covid pandemic, the BOJ doubled its annual ETF purchase target to ¥12 trillion. The effectiveness of quantitative easing is the subject of an intense dispute among researchers as it is difficult to separate the effect of quantitative easing from other contemporaneous economic and policy measures, such as negative rates. Former Federal Reserve Chairman Alan Greenspan calculated that as of July 2012, there
11881-413: Was removed on July 31, after being acquired by Merck KGaA . Skyworks Solutions replaced Sigma-Aldrich on August 3. Altera was removed on October 7 as a result of its merger with Intel. Incyte replaced Altera's on that date. PayPal was added to the index on November 11, as Broadcom was in the process of merging with Avago. Nasdaq announced on December 11 that seven companies would be replaced in
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