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Animal Spirits Podcast

Talk Your Book: A Short History of the Nasdaq 100

Feb 17, 2025
In this engaging discussion, Emily Spurling, SVP and Global Head of Index at Nasdaq, highlights the Nasdaq 100's impressive journey from the dot-com bubble to its current status, nearly hitting 22,000 points. She dives into the evolution of the index, emphasizing tech's growing influence and examines the eligibility criteria for companies. The conversation also addresses market cap intricacies, the significance of R&D investments among listed firms, and the impact of major economic events on the index's composition and performance.
30:59

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The NASDAQ 100 has transitioned from a diverse index to primarily technology-focused, reflecting market evolution and company maturation.
  • The process for companies to join the NASDAQ emphasizes innovation and includes strict methodologies to manage concentration risks within the index.

Deep dives

The Evolution of the NASDAQ 100

The NASDAQ 100 has undergone significant changes since its inception, evolving from a focus on smaller, emerging companies to a pivotal benchmark in the investment landscape. In 1999, the NASDAQ represented about 15% of the S&P 500, while today, it encompasses nearly 50%, showcasing a remarkable shift in market capitalization. This evolution reflects the maturation of technology companies, leading to a more stable index composed of larger, established firms. The growth from a low of around 800 during the financial crisis to over 22,000 illustrates its transformation into a core holding for many investors.

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