Big Tech’s Dominance in Stock Market Hits Breakpoint for Nasdaq 100

America’s biggest tech companies have become too large even for the stock index tracking America’s biggest tech companies.

  • The seemingly unstoppable growth of megacaps like Apple Inc. and Microsoft Corp. mean they have breached an upper limit imposed on stocks in the Nasdaq 100.
  • The index provider says the July 24 adjustment will “address overconcentration in the index by redistributing the weights.”

While details on the action are sparse, a paper on the Nasdaq website says special rebalancings can be called in certain circumstances when the portion represented by the index’s biggest members exceeds a preset threshold.

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