Nasdaq vs Dow: How are the key indices different as SpaceX joins one? | Explainer News
SpaceX Joins Nasdaq-100 Following Initial Public Offering
Published: July 7, 2026
SpaceX has been added to the Nasdaq-100 index, just weeks after its initial public offering, marking a significant deviation from the index’s established trading rule.
The Nasdaq-100, which includes the 100 largest non-financial companies listed on the Nasdaq exchange, traditionally required publicly traded companies to be listed for three calendar months—excluding the month of listing—before they could be included. SpaceX’s waiver of this stipulation may have implications for future IPOs, including those of prominent artificial intelligence firms such as OpenAI and Anthropic.
In the wake of SpaceX’s inclusion, over 200 investment products linked to the Nasdaq-100 are affected, including pension funds for public school educators, police officers, and firefighters throughout the United States.
The Nasdaq-100 is distinct from the Dow Jones Industrial Average, which tracks 30 large, established companies across various sectors, including notable technology firms like Apple and Amazon, as well as financial services and consumer brands. Notably, SpaceX is not listed on the Dow, which selects companies deemed to best represent the U.S. economy.
To qualify for listing on the Nasdaq, companies must meet specific criteria, such as having at least 1.25 million shares publicly traded, a market capitalization of at least $50 million, and a minimum share price of $4.
SpaceX’s entry into the Nasdaq-100 comes as part of a broader context. Although the index typically requires an average daily trading of at least 200,000 shares over a three-month period, officials made an exception for SpaceX during its IPO.
The investment strategies typically associated with the two indices differ. The Dow’s more conservative approach generally appeals to investors seeking stability, while the Nasdaq index, characterized by high-growth potential technology companies, carries a higher risk of volatility. Nine companies, including Alphabet, Amgen, and Walmart, are listed on both indices.