Nasdaq 100 Index Will Undergo Special Rebalance To Limit Tech Giants' Influence: Reshuffling The Deck
Portfolio Pulse from Piero Cingari
The Nasdaq 100 Index, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), is set to undergo a significant rebalancing on July 24 to curb the dominance of large corporations including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). This may lead to significant price shifts in the tech-heavy index. ETFs that follow the Nasdaq 100 Index, like the ProShares UltraPro QQQ ETF (NASDAQ:TQQQ), are also preparing for the rebalance.
July 10, 2023 | 8:15 pm
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NEGATIVE IMPACT
Apple (NASDAQ:AAPL) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Apple. This could potentially lead to a decrease in Apple's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Amazon (NASDAQ:AMZN) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Amazon. This could potentially lead to a decrease in Amazon's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Alphabet (NASDAQ:GOOG) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Alphabet. This could potentially lead to a decrease in Alphabet's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Alphabet (NASDAQ:GOOGL) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Alphabet. This could potentially lead to a decrease in Alphabet's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Meta Platforms (NASDAQ:META) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Meta Platforms. This could potentially lead to a decrease in Meta Platforms' stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Microsoft (NASDAQ:MSFT) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Microsoft. This could potentially lead to a decrease in Microsoft's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
NVIDIA (NASDAQ:NVDA) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like NVIDIA. This could potentially lead to a decrease in NVIDIA's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Tesla (NASDAQ:TSLA) is one of the companies whose dominance the Nasdaq 100 Index rebalancing aims to curb.
The rebalancing aims to reduce the influence of large corporations like Tesla. This could potentially lead to a decrease in Tesla's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Invesco QQQ Trust (NASDAQ:QQQ) is set to undergo a significant rebalancing, which may lead to significant price shifts.
The rebalancing of the Nasdaq 100 Index, which QQQ tracks, could lead to significant price shifts. However, the direction of the shift is uncertain.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
ProShares UltraPro QQQ ETF (NASDAQ:TQQQ) is preparing for the rebalance of the Nasdaq 100 Index.
The rebalancing of the Nasdaq 100 Index, which TQQQ tracks, could lead to changes in the ETF. However, the impact is uncertain.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80