Nasdaq 100 Falls More than 2% as Traders Dump Big Tech. Will the Sell-Off Continue? (2024)

FAQs

What triggers Nasdaq delisting? ›

If a company can't maintain the minimum requirements to remain listed, Nasdaq will delist it. Failure of a company to meet a minimum closing bid price of at least $1 for 30 consecutive trading days can trigger delisting. When this happens Nasdaq issues a deficiency notice to the company.

The Nasdaq 100 Index comprises assets in various sectors, except financial services. There are eight total sectors, which are the following as of June 20, 2025: Technology (62.25%) Consumer Discretionary (17.02%)

Listing requirements vary from one exchange to the next. For example, the Nasdaq requires a security's price not to close below $1.00 for 30 consecutive trading days, at which point the exchange initiates the delisting process.

The Nasdaq's recent selloff comes on the back of investors selling Wall Street's heavyweight stocks after lackluster results from Tesla and Alphabet compounded investor worries about stretched valuations and concerns that a rally fueled by optimism about the AI technology may have become overextended.

Though delisting does not affect your ownership, shares may not hold any value post-delisting. Thus, if any of the stocks that you own get delisted, it is better to sell your shares. You can either exit the market or sell it to the company when it announces buyback.

Although some brokerages restrict such OTC transactions, you generally can sell a delisted stock just as you would a stock that trades on an exchange. A delisted stock can continue to trade over the counter for years, even if the company files for bankruptcy.

About Nasdaq

Positioned at the nexus of technology and the capital markets, Nasdaq provides premier platforms and services for global capital markets and beyond with unmatched technology, insights and markets expertise.

Over the last ten years, the average PE ratio of Nasdaq has been 29.11. The current 35.38 P/E ratio is 22% higher than the historical average. In the past ten years, NDAQ's PE ratio peaked in the Dec 2016 quarter at 106.54, with a price of $22.37 and an EPS of $0.21.

The US Tech 100, also known as the Nasdaq 100 index, is a market capitalization system featuring more than 100 of the largest publicly-traded non-financial businesses on the Nasdaq composite index.

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What is the $1.00 rule on the NYSE? ›

Since early 2023, hundreds of small public companies have risked being delisted for non-compliance with Nasdaq, Inc. and NYSE American's continued listing requirements. Chief among the deficiencies has been failure to maintain at least a $1 closing bid price per share for 30 consecutive business days.

Investors holding shares after a delisting will only be able to sell them OTC. That generally means less liquidity, finding it harder to locate buyers at the price you want, and potentially being left in the dark about what the company is up to. Nasdaq. “Listing Center.”

The Nasdaq 100 price prediction from Long Forecast Agency is bullish, predicting that the index could close Q2 2024 at 19,600 and trade above 20,000 points during 2024. The NASDAQ 5-year forecast is also bullish, with the Tech index expected to trade as high as +30,000 points.

The Nasdaq 100 forecast remains bullish from a technical point of view with the index holding above a key bullish trend line. Technology stocks led the charge higher on Wall Street, helping to boost the Nasdaq 100 more than 3% on the session.

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.

Companies usually delist because they want to go private, are taken over by private equity firms, or fail to meet the minimum standards set by their exchange.

With investors trying to exit their positions, sellers outweigh buyers, causing a stock's price to fall. If a stock's share price drops below $1.00 and remains below that level for 30 days, the exchange may notify the company that it is not in compliance with listing requirements and is at risk of being delisted.

The most common reasons for a stock's trading being halted are as follows: Major corporate transactions (such as a merger or acquisition, restructuring, etc.) or news. Significant information (negative or positive) about the company's products or services.