Finance

Factors That Affect the Performance of the Nasdaq Index and the Dow Jones

Several market forces affect the performance of both the Nasdaq index vs Dow Jones. Some of these market forces are direct, such as the supply and demand for shares of index-tracking ETFs. Other market forces are indirect, such as the behavior of traders and investors who buy and sell individual stocks that make up the indexes. The most important market force that affects both the Nasdaq Index and the Dow Jones is earnings growth. When companies that make up these indexes report strong earnings growth, their stock prices tend to rise, which pushes up the overall value of the indexes....