Nasdaq's Special Rebalancing: Impact on Tech Earnings and Dominant Stocks

Nasdaq will conduct a "special rebalance" of the Nasdaq 100 index to reduce the concentration of heavyweight companies, such as Microsoft, Apple, Nvidia, Amazon, and Tesla, which currently account for nearly half of the index's weight. The rebalance aims to address concerns that these few names are distorting the overall stock market. The adjustment will be based on shares outstanding as of July 3, with changes set to be announced on July 14 and taking effect on July 24. This rebalancing may impact investment funds that track the Nasdaq 100, requiring them to adjust their portfolios and potentially sell shares of companies with reduced weight in the index.