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Market Heavyweights Fall Ahead of Nasdaq 100 Rebalancing

Market Heavyweights Fall Ahead of Nasdaq 100 Rebalancing

Shares of Apple , Microsoft and other heavyweight companies fell on Monday, 10 July, after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address “overconcentration” of the benchmark.

Apple fell 1.1%, leaving its market capitalisation at $2.967 trillion. It closed above the $3 trillion threshold for the first time on 30 June. Alphabet and Amazon fell more than 2 per cent, while Microsoft and Tesla each slipped more than 1 per cent.

Wall Street’s most valuable stocks fell after Nasdaq said on Friday evening, 07/07, that it would conduct a “special rebalancing” of the index to “address overconcentration in the index by redistributing the weights”.

The adjustment will be based on shares outstanding as of 3 July, with changes announced on 14 July and taking effect before the market opens on 24 July.

The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and the changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced.

Wall Street’s most valuable companies have been among the biggest winners from the US stock market rally this year, further increasing their weight in the Nasdaq 100 as well as the Nasdaq Composite and S&P 500.

See Also

While the S&P 500 has gained 15% year-to-date, Nvidia has surged 189% and Tesla has more than doubled. Microsoft, Amazon and Apple are up between 38% and 51% in 2023.



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