The NASDAQ 100 is a prominent stock market index that tracks the performance of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. It is heavily weighted toward technology and innovation-driven industries, including tech giants, biotechnology firms, and consumer services companies, though it also includes businesses from sectors like healthcare and retail. The index is market capitalization-weighted, giving larger companies more influence over its movements. Known for its focus on growth-oriented and tech-centric businesses, the NASDAQ 100 serves as a key indicator of the technology sector’s health and is closely watched by investors seeking exposure to innovative and dynamic companies.

US NASDAQ 100 Index

The S&P 500 Index is a widely recognized stock market index that tracks the performance of 500 large, publicly traded companies listed on stock exchanges in the United States. It serves as a key benchmark for the overall health and direction of the U.S. equity market and is considered a reflection of the broader economy. The index is market capitalization-weighted, meaning larger companies have a greater impact on its value. Representing diverse industries, including technology, healthcare, finance, and consumer goods, the S&P 500 is often used by investors to gauge market trends, compare investment performance, and build portfolios.

US S&P 500 Index

The U.S. Dollar Index (DXY) is a key financial benchmark that tracks the value of the U.S. dollar against a basket of six major world currencies. It serves as an indicator of the dollar’s strength in the global foreign exchange market and is closely watched by traders, economists, and policymakers.

Breakdown of the Basket

The six currencies in the index and their weightings are:

• Euro (EUR) – 57.6%
• Japanese Yen (JPY) – 13.6%
• British Pound (GBP) – 11.9%
• Canadian Dollar (CAD) – 9.1%
• Swedish Krona (SEK) – 4.2%
• Swiss Franc (CHF) – 3.6%

Since the euro has the highest weighting, movements in the DXY are often heavily influenced by the EUR/USD exchange rate.

How the DXY Moves

The index moves based on:

• Interest Rate Differentials – Higher interest rates in the U.S. compared to other countries attract capital, strengthening the dollar and pushing DXY higher.
• Economic Data – Strong GDP growth, low unemployment, and high inflation can lead to expectations of higher interest rates, boosting the dollar.
• Geopolitical Events – Crises or uncertainty often lead to a stronger dollar as investors seek its safety.
• Market Sentiment – If investors are risk-averse, they tend to buy dollars as a safe-haven asset.

Impact of the Dollar Index

• Trade and Exports – A stronger dollar (higher DXY) makes U.S. goods more expensive for foreign buyers, potentially reducing exports. A weaker dollar (lower DXY) makes U.S. exports more competitive.
• Commodities – Since most commodities (like oil and gold) are priced in dollars, a rising DXY makes them more expensive for foreign buyers, often pushing prices down.
• Global Markets – Emerging markets with dollar-denominated debt can struggle when DXY rises because it becomes more expensive to repay debt.

Long-Term Trends

The DXY was created in 1973 and has seen significant fluctuations:

• 1985 Peak (~160) – The dollar was extremely strong, leading to the Plaza Accord, where major economies agreed to weaken it.
• 2008-2011 Decline (~72) – Post-financial crisis, low U.S. interest rates weakened the dollar.
• Recent Highs (2022-2023 above 110) – The Federal Reserve’s aggressive rate hikes strengthened the dollar.

Key Takeaway

The DXY is a crucial tool for understanding global market trends, monetary policy, and international trade. A rising DXY signals dollar strength, while a falling DXY indicates weakness, influencing everything from corporate profits to inflation and investment flows worldwide.

Global X Lithium & Battery Tech ETF as a proxy for Lithium Price Performance

A Key Material in Energy Storage and Technology

Lithium (chemical symbol: Li) is a soft, silvery-white alkali metal known for its lightweight and highly reactive properties. It is most commonly found in brine deposits, pegmatite minerals (such as spodumene and lepidolite), and clay formations. The largest reserves are concentrated in the “Lithium Triangle” of South America, spanning Argentina, Bolivia, and Chile, where vast salt flats hold mineral-rich brine. Australia is also a major producer, particularly through hard rock mining of spodumene. Leading companies in the sector include Albemarle Corporation (USA), SQM (Chile), Tianqi Lithium (China), and Ganfeng Lithium (China), alongside significant Australian mining firms such as Pilbara Minerals and Mineral Resources.

The primary use of this critical material is in rechargeable batteries, which power everything from smartphones and laptops to electric vehicles (EVs) and renewable energy storage systems. Demand has surged in recent years due to the global transition to clean energy and the electrification of transport. Beyond energy storage, it is also used in glass and ceramics, lubricating greases, pharmaceuticals (such as mood stabilizers), and even nuclear fusion applications. As a key component in modern technology and sustainable energy solutions, its role in the global economy continues to grow.

About The Global X Lithium & Battery Tech ETF (LIT)

The Global X Lithium & Battery Tech ETF (LIT) is an exchange-traded fund that provides investors with exposure to the entire battery supply chain, from raw material extraction to cell production and technology development. Managed by Global X ETFs, LIT tracks the Solactive Global Lithium Index, which includes companies involved in mining, refining, battery production, and electric vehicle (EV) technology.

This ETF offers a diversified approach to investing in the sector, including major producers such as Albemarle Corporation (USA), SQM (Chile), and Ganfeng Lithium (China), as well as companies advancing next-generation battery technologies, like Tesla (USA), Panasonic (Japan), and BYD (China). By encompassing both raw material suppliers and manufacturers, LIT captures the full spectrum of growth opportunities in the global push toward electrification and sustainable energy storage.

Investing in LIT provides exposure to one of the most rapidly expanding industries, as demand for advanced energy storage solutions is expected to soar with the rising adoption of electric vehicles, grid-scale batteries, and consumer electronics. However, the ETF is also subject to volatility, influenced by fluctuations in raw material prices, regulatory shifts, and technological advancements. Despite these risks, LIT remains a popular option for investors seeking a long-term play on the battery revolution and the transition to clean energy.

Silver Price In US Dollars