The Nasdaq Composite Just Had One of Its Worst Years In History. Here's What Usually Happens Next

The Nasdaq Composite is a market index that tracks over 3,600 companies, all of which are listed on the Nasdaq Stock Market, the second-largest exchange in the world in terms of market capitalization. The index is heavily weighted toward the technology sector, so the Nasdaq is commonly viewed as a benchmark for technology stocks, especially high-growth technology stocks.

Of course, many stocks that fit that description performed quite poorly last year, as investors turned bearish in response to red-hot inflation and rising interest rates. That caused the Nasdaq Composite to tumble 33.1% in 2022, marking the index's fourth-worst decline since it was created in 1971.

Here's what investors should know.

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Source Fool.com