Key points
- More volatile than S&P 500.
- Sensitive to interest rate changes.
- Dominated by mega-cap tech (FAANG).
Example
A 50 bp rise in 10Y real yields often pressures high-duration tech stocks, dragging the Nasdaq more than the S&P 500.
In history
The Nasdaq 100 fell about 33% in 2022 as real yields rose, then rebounded sharply in 2023–2024 on AI-driven mega-cap earnings strength.
Related terms