Nasdaq 100 Reaches Breaking Point as Big Tech Dominates Stock Market

The dominance of big tech companies like Apple and Microsoft in the stock market has reached a breaking point for the Nasdaq 100 index, prompting Nasdaq Inc. to announce a "special rebalance" to redistribute the weight of index members. This action is a response to the relentless rally of megacaps, which has sparked concerns about concentration risk. The rebalance aims to help fund managers comply with diversification rules and reduce the influence of the largest companies in the index. While the reshuffling may cause short-term fluctuations, it is unlikely to have a profound impact on the Nasdaq's performance going forward.