S&P 500 and Nasdaq 100 Gain for Fourth Day in a Row as Traders Await Key Earnings (2024)

FAQs

What is the average return of Nasdaq-100? ›

Returns have been calculated based on TradingView charts. Since 1985 (39 years) the Nasdaq 100 has produced an annualized return of 13.65% (not including dividends).

S&P 500 Index Futures are at 5145.00, up 13.50 or +0.26% and Nasdaq-100 Index Futures are trading 17923.50, up 77.75 or +0.44%.

The Nasdaq Composite fell for a sixth straight session on Friday, notching its longest losing streak in more than a year. The downtrend comes as Nvidia dived, adding to recent market woes tied to geopolitical conflicts and sticky inflation.

Nasdaq 2023 annual EPS was $2.08, a 7.96% decline from 2022. Nasdaq 2022 annual EPS was $2.26, a 3.83% decline from 2021. Nasdaq 2021 annual EPS was $2.35, a 26.34% increase from 2020.

The average stock market return is about 10% per year, as measured by the S&P 500 index, but that 10% average rate is reduced by inflation. Investors can expect to lose purchasing power of 2% to 3% every year due to inflation. » Learn more about purchasing power with NerdWallet's inflation calculator.

Bottom Line. Since 1957, the S&P 500's average annual rate of return has been approximately 10.5% (through March 2023) and around 6.6% after adjusting for inflation.

Therefore, the downside risk is likely to be higher in case of the Nasdaq 100 when compared S&P 500 index, which has a much broader representation of the US companies across different sectors. So, if you are looking to own a more diversified basket of stocks, the S&P 500 will be the right fit for you.

Nasdaq 100 vs.

There is some overlap between the Nasdaq 100 and the S&P 500. For example, Apple appears on both indices. But the weighting of the S&P 500 index is more evenly distributed across sectors, and it isn't so technology heavy. Just 26% of the S&P 500 is in technology stocks.

Despite how great of an investment option the S&P 500 is, one ETF has historically been a better investment: the Vanguard Growth ETF (NYSEMKT: VUG).

Why is Nasdaq 100 so volatile? ›

Because the Nasdaq Composite is dominated by the historically volatile technology sector, index performance tends to be more volatile than that of the S&P 500 or the Dow Industrials.

The NASDAQ 100 is influenced by a variety of factors that also move the broader stock market. This can vary from economic data, interest rates, and monetary policy decisions to geopolitical events and natural disasters.

Nasdaq 100 Stocks Above 50-Day Average

Nasdaq 100 IndexThe percentage of Nasdaq 100 stocks trading above their 50 DMA is at 33%.

Basic Info

S&P 500 Earnings Yield is at 4.03%, compared to 4.30% last quarter and 4.50% last year. This is lower than the long term average of 4.71%.

EPS is the net income divided by the number of shares outstanding, and is a common way to express profits in the investing world. You want your stock's EPS up 25% or more compared with the year-ago quarter in the most recent quarter or two. Preferably, EPS should be increasing over recent quarters as well.

The Nasdaq returned 264% over the last decade, compounding at 13.8% annually. Investors can get direct exposure to the index with the Fidelity Nasdaq Composite ETF (NASDAQ: ONEQ).

The Nasdaq Composite is the barometer for tech stocks, and its 20-year return of 687% led the three major indexes.

The Nasdaq Composite had the strongest 20-year performance after rising 687%, or 10.9% annually. The Fidelity Nasdaq Composite ETF is one way to invest in the index.

Over the past 15 years, Nasdaq 100 has delivered a CAGR of around 16%, while S&P 500 has returned about 8%.