Professor Ali Gamal Abdelgawad: The Nasdaq 100 Index

• بواسطة دكتور علي جمال عبد الجواد
• 2025 Nov 28
• 1109

 

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance.

The Nasdaq 100 Index: A Recent Look and Comprehensive Analysis

The Nasdaq 100 is an index comprising the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. It focuses on technology, internet, software, digital services, and energy companies, excluding financial companies.

The Nasdaq 100 is considered a leading indicator of the performance and growth of technology markets in the United States and globally, and is widely used by investors and traders to track the movements of major stocks.

Current Situation (2025)

In 2025, the Nasdaq 100 is projected to perform strongly, driven by the recovery of the technology and artificial intelligence sectors.

The index has experienced short-term volatility, with some major companies reaching record highs, while others have seen minor corrections.

The share prices of leading companies, such as tech giants and data centers, have contributed to pushing the index to higher levels, although some global economic risks remain.

Technical Analysis

Overall Trend: Bullish in the medium term, with some correction periods due to market volatility.

Support Levels: These are located at previous price reversal points, providing a buying opportunity when the index dips temporarily.

Resistance Levels: Above the current index are critical resistance levels; breaking them would indicate a continuation of the upward trend.

Momentum and Moving Averages: These indicate market strength, but warnings increase as the index approaches historical highs.

Fundamental Analysis

Performance of Major Companies: Companies like Apple, Microsoft, Amazon, and Tesla significantly influence the index due to their large relative weighting.

Economic Factors: Interest rates, inflation, and US economic data directly impact the index's performance.

Technology and Innovation: Tech giants are the backbone of the Nasdaq 100, and any positive or negative news about innovation has a significant impact.

 

Opportunities

Innovation and Growth: Significant growth opportunities arise from the focus on technology, artificial intelligence, and cloud computing.

High Liquidity: The index's inclusion of the largest and most actively traded companies provides easy entry and exit opportunities.

Internal Diversification: The index covers companies from various non-financial sectors, reducing individual risk.

Risks

Market Volatility: High valuations make the index sensitive to negative news or economic changes.

Heavy Technology Reliance: A sharp downturn in the technology sector could put pressure on the index.

Global Economic Risks: Interest rate volatility, inflation, or economic crises could affect the index's performance.

Future Outlook

Long-Term: The Nasdaq 100 is expected to continue growing, especially with the continued demand for innovation and digital services.

Short-Term: Some corrections or fluctuations are likely due to economic and political events.

Investor Strategy: Long-term investment is suitable for achieving sustainable growth, while short-term traders can profit from market volatility with careful risk management.

Conclusion

The Nasdaq 100 is an index that represents the pinnacle of innovation and technology in the United States and offers significant growth opportunities, but it comes with high volatility risks:

For the Long-Term Investor: An excellent opportunity for capital growth over the medium to long term.

For the Short-Term Trader: Offers opportunities to profit from price movements, but requires strict risk management.

• الوسوم
• Professor
• Ali
• Gamal
• Abdelgawad:
• The
• Nasdaq
• 100
• Index
• Professor Ali Gamal Abdelgawad: The Nasdaq 100 Index