Market heavyweights dip ahead of Nasdaq 100 rebalance
![Electronic screen displays Apple Inc logo](https://business.inquirer.net/files/2023/07/2023-07-10T221227Z_1_LYNXMPEJ690SW_RTROPTP_4_APPLE-STOCKS-TRILLION-620x413.jpg)
An electronic screen displays the Apple Inc. logo on the exterior of the Nasdaq Market Site in New York City, New York, U.S. REUTERS/Mike Segar/File photo
Shares of Apple, Microsoft and other heavyweight companies dipped on Monday after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark’s “overconcentration.”
Apple dropped 1.1 percent, leaving its market capitalization at $2.967 trillion. It closed above the $3 trillion threshold for the first time on June 30. Alphabet and Amazon fell over 2 percent, while Microsoft and Tesla each slid more than 1 percent.
Apple makes history as first $3-T company amid tech stock surge
Wall Street’s most valuable stocks declined after Nasdaq said late on Friday it would carry out a “Special Rebalance” of the index to “address overconcentration in the index by redistributing the weights.”
The adjustment will be based on shares outstanding as of July 3, with changes announced on July 14 and taking effect before the market opens on July 24.
The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and 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.
S&P 500 and Nasdaq close at highest since April 2022
Wall Street’s most valuable companies have been among the biggest winners in the U.S. stock market’s recovery this year, further increasing their weight in the Nasdaq 100, and also in the Nasdaq Composite and S&P 500.
While the S&P 500 has gained 15 percent year to date, Nvidia has surged 189 percent and Tesla has more than doubled. Microsoft, Amazon and Apple have climbed between 38 percent and 51 percent in 2023.
Read Next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.
For feedback, complaints, or inquiries, contact us.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.