Nasdaq 100 Undergoes Major Rebalancing: What You Need to Know

The Nasdaq 100 is undergoing its second "special rebalancing" in 25 years, resulting in changes to the weightings of its largest stocks. The seven stocks with the heaviest weightings will see their collective weight reduced, while the information technology sector's weight will decline. Apple and Microsoft will remain the largest constituents but with reduced index weights. Broadcom's index weight will see the biggest increase. The rebalancing aims to address concentration risk. Analysts do not expect significant market impact from these changes.