Index changes at NASDAQ

NASDAQ To Be “Rebalanced”

The dominance of tech giants on the stock market is causing an imbalance, according to experts. Companies, including Microsoft, Apple, and Amazon, caused the Nasdaq 100 index to rise 37.5% this year. They account for 43.8% of the index and a “rebalance” is needed to reduce this to a target of 38.5%.

Art Hogan, chief market strategist for B Riley Wealth, said, “There is some concern that this handful of names is distorting the health of the overall stock market, which is likely what’s spurring the special rebalancing.”

Refinitiv data reports that Microsoft carries the biggest weight at 12.91%, followed by Apple with 12.47%, Nvidia at 7.04%, Amazon at 6.89%, and Tesla at 4.50%. A “special rebalancing” aims to restore compliance with the US Securities and Exchange Commission rule on fund diversification.

Read more...