Nasdaq vs Dow: How are the key indices different as SpaceX joins one?

SpaceX joins Nasdaq-100" class="entity-link entity-organization" data-entity-id="160698" data-entity-type="organization">Nasdaq-100 after IPO, bypassing traditional three-month trading rule for inclusion in the tech-heavy index.SpaceX has officially joined the Nasdaq-100" class="entity-link entity-organization" data-entity-id="160698" data-entity-type="organization">Nasdaq-100 index, less than a month after the Elon Musk-led company first debuted on public markets through its initial public offering.The inclusion in the Nasdaq-100" class="entity-link entity-organization" data-entity-id="160698" data-entity-type="organization">Nasdaq-100, which tracks the 100 largest non-financial companies listed on the Nasdaq, marks a change in the index’s pre-existing rule.Recommended Stories list of 4 itemslist 1 of 4China sentences former local official to death in $324m corruption caselist 2 of 4How much does playing in the World Cup pay?list 3 of 4US trade deficit surges amid artificial intelligence spending boomlist 4 of 4SpaceX shares slide as it joins the tech-heavy Nasdaq-100end of listThe rule required companies that were publicly traded to be listed for three calendar months, excluding the month of listing, before they could be included in the index. Waiver of that rule for SpaceX paves the way for similar looming IPOs, including artificial intelligence giants OpenAI and Anthropic.There are more than 200 investment products that are tied to the performance of the Nasdaq-100" class="entity-link entity-organization" data-entity-id="160698" data-entity-type="organization">Nasdaq-100, including many pension funds for public school teachers, police officers and firefighters across the United States.How do the Dow Jones Industrial Average and the Nasdaq differ?The Dow Jones Industrial Average and the Nasdaq are two of the most closely monitored indices on US stock markets.The Dow tracks 30 companies that have large and well-established businesses. Among them are tech giants like Apple, Amazon and Nvidia; financial services companies such as Goldman Sachs and JPMorgan Chase; and consumer brands, including Nike, Coca-Cola and McDonald’s.Because of their outsized role in the economy, investors typically view the performance of these companies as a snapshot of what the US economy looks like as a whole.SpaceX is not listed on the Dow Jones Industrial Average. A board that is majority controlled by S&P Global hand-picks companies that it believes best represent the US economy to be included in the index.