Market heavyweights dip ahead of Nasdaq 100 rebalance

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Shares of Apple , Microsoft and other heavyweight companies dipped on Monday after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's 'overconcentration.'

Wall Street's most valuable stocks declined after Nasdaq said late on Friday it would carry out a "Special Rebalance" of the index to "address overconcentration in the index by redistributing the weights."

The adjustment will be based on shares outstanding as of July 3, with changes announced on July 14 and taking effect before the market opens on July 24. The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced.

Wall Street's most valuable companies have been among the biggest winners in the U.S. stock market's recovery this year, further increasing their weight in the Nasdaq 100, and also in the Nasdaq Composite

 

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