Apple Vs. Microsoft: Can A $35B Rebalance Amplify Bullish Momentum?
Portfolio Pulse from Surbhi Jain
Apple Inc. (AAPL) is set to benefit from a $35 billion market index fund rebalance, coinciding with a triple witching event. This could amplify its bullish momentum, as Apple surpasses Microsoft in market cap and becomes the largest holding in the SPDR S&P 500 ETF (SPY).
September 20, 2024 | 6:51 pm
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POSITIVE IMPACT
Apple is expected to benefit from a $35 billion market index fund rebalance, potentially boosting its stock price. The company now surpasses Microsoft in market cap, becoming the largest holding in SPY.
The $35 billion rebalance will require significant buying of Apple shares, likely boosting its stock price. Apple's technical indicators also support a bullish outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The SPDR S&P 500 ETF will see Apple become its largest holding due to the rebalance, which could influence the ETF's performance.
With Apple becoming the largest holding in SPY, the ETF's performance may be positively influenced by Apple's bullish momentum.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Microsoft's market cap is now surpassed by Apple, which may affect its position in market index funds. This could lead to a relative decrease in demand for Microsoft shares.
As Apple surpasses Microsoft in market cap, index funds may adjust their holdings, potentially reducing demand for Microsoft shares.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70