(Reuters) – Shares of Apple, Microsoft and other heavyweight companies fell on Monday after Nasdaq Inc said it would rebalance its Nasdaq 100 index to address benchmark “overconcentration” .
Apple fell 1.1%, leaving its market capitalization at $2.967 billion. It closed above the $3 trillion threshold for the first time on June 30. Alphabet and Amazon fell more than 2%, while Microsoft and Tesla each slipped more than 1%.
Wall Street’s most valuable stocks fell after the Nasdaq announced late Friday that it would conduct a “special rebalancing” of the index to “address index over-concentration by redistributing weightings.”
The adjustment will be based on shares outstanding as of July 3, with the changes being 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 stock exchange, and changes to the index will force investment funds that track it to adjust their portfolios and sell stocks of companies whose weight in the index is reduced.
Wall Street’s most valuable companies have been among the biggest gainers from the U.S. stock market rally this year, further increasing their weight in the Nasdaq 100, as well as the Nasdaq Composite and S&P 500.
While the S&P 500 has gained 15% since the start of the year, Nvidia has jumped 189% and Tesla has more than doubled. Microsoft, Amazon and Apple have climbed between 38% and 51% in 2023.
(Reporting by Noel Randewich; Editing by Richard Chang)