Nasdaq-100 Rebalance: A Game-Changer for Investors
The Nasdaq-100 is undergoing a rebalance after its largest tech companies became too dominant, with their combined weighting exceeding the index's methodology. The rebalance will cap their combined weighting at 40%, in line with the index's rules. This move comes as megacap tech companies like Nvidia and Tesla have experienced significant stock gains, influencing the performance of the Nasdaq-100, which tracks the country's major tech firms based on market capitalization.