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2 Reasons the Nasdaq Has Led the Market Lower in 2022


Investors took a pause on Tuesday morning, with major stock market benchmarks easing lower after massive gains over the past two trading sessions. As of 10:30 a.m. ET today, the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down more than half a percent, taking far larger losses than fellow indexes like the Dow Jones Industrial Average (DJINDICES: ^DJI). That's been a trend lately, with the Nasdaq seeing a much larger drop in January than the Dow.

For casual investors, there's often confusion when different indexes don't behave the same way. However, two fundamental differences in the makeup of the Dow and the Nasdaq explain the disparity. Below, we'll go into both of those factors to see how they've played out lately.

Image source: Getty Images.

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Source Fool.com

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