July 23 () –
The Nasdaq-100 stock index, which brings together the great American technological values, will carry out a “special rebalancing” this Monday with the aim of limiting the excessive influence in the selective of the ‘magnificent seven’, as Microsoft, Apple, Nvidia, Tesla, Alphabet (Google parent company), Meta Platforms and Amazon are called.
Before the readjustment in the weightings of the values that make up the Nasdaq-100, which will be effective before the opening of this Monday, the weight of the shares of these seven large technology companies was around 55% of the selective, which exposed the price of the index to the evolution of only a handful of its components.
The special rebalancing, only the third that the Nasdaq will execute in its entire history, after those undertaken in December 1998 and in May 2011, aims to “address excess concentration” in the index by redistributing the weights.
In this sense, Nasdaq has stressed that the extraordinary correction will not result in the removal or addition of securities to the selective.
According to the rebalancing methodology, published by Nasdaq, the combined weight of the five companies with the largest market capitalization will be set at 38.5% of the index, compared to the previous 46.7% of Apple, Microsoft, Google, Amazon and Nvidia.
Likewise, the manager of the electronic stock market specifies that no component outside the five main companies by market capitalization may have a weight greater than 4.4% in the Nasdaq 100 or above the weight of the shares of the company with the fifth highest market valuation, whichever is lower.
According to analysts, the rebalancing could boost the weighting in the selective of stocks such as Starbucks, Mondelez International, Booking Holdings, Gilead Sciences, Intuitive Surgical, Analog Devices and Automatic Data Processing (ADP).