Nasdaq 100 rebalances again: Tesla, Meta, Broadcom weights decrease, Apple, Nvidia, Microsoft, Alphabet weights increase.

In the annual rebalancing, the weights of Tesla, Inc. (TSLA.US), Meta (META.US), and Broadcom Inc. (AVGO.US) in the Nasdaq 100 index have decreased, while the weights of Apple Inc. (AAPL.US), NVIDIA Corporation (NVDA.US), Microsoft Corporation (MSFT.US), and Alphabet (GOOGL.US) have increased. Specific data shows that in the Nasdaq 100 index, the weight of Apple Inc. has risen from 9.2% last Friday to 9.8%, NVIDIA Corporation from 7.9% to 8.4%, Microsoft Corporation, Amazon.com, Inc. have also increased, and Alphabet's increase is relatively small. At the same time, the weight of Broadcom Inc. has decreased from 6.3% to 4.4%, Tesla, Inc. from 4.9% to 3.9%, and Meta from 4.9% to 3.3%. It is reported that this is the second time in nearly a year that regulatory agencies have adjusted the proportion of the largest component stocks in the index, which roughly coincide with the "Magnificent Seven" in the US stock market, and the unstoppable appreciation of these stocks has always been the focus of the market. In recent years, rules aimed at preventing a few companies from having too much influence on stock indices have been frequently applied, given that the rise in the US stock market is largely driven by artificial intelligence. The weight of the Nasdaq 100 index roughly depends on the relative market value of its member stocks. However, it is also influenced by several clauses, and if a few component stocks are too large, the clauses affecting the component stocks will take effect. For example, when the total weight of all component stocks with a weight of 4.5% or more in the index reaches or exceeds 48%, an adjustment clause will be triggered. The reason for this adjustment is because the recent surge in the stock price of Broadcom Inc. has caused its weight to exceed the 4.5% threshold. The last time this happened was in mid-2023, when the "Magnificent Seven" showed their prowess, leading to an adjustment of the Nasdaq 100 index. Steve Sosnick, Chief Strategist at Interactive Brokers Group, Inc. Class A, said, "This is highly technical. To some extent, the Nasdaq 100 index must do this because the growth of the largest stocks in the index relative to other stocks in the index is too amazing." An analysis by Bloomberg Intelligence shows that there are over 200 exchange-traded products (ETPs) globally tracking the Nasdaq 100 index or its variants, with total assets of approximately $540 billion, such as the ETF Invesco QQQ Trust Series 1 with the trading code QQQ and the ETF Invesco NASDAQ 100 ETF with the trading code QQQM. With the rebalancing adjustment of the Nasdaq 100, these ETPs will also lower the weights of the component stocks whose weights have decreased in the Nasdaq 100. Bloomberg Intelligence analyst Athanasios Psarofagis said, "This shows that index providers are increasingly influential in market dynamics, and the inclusion of individual stocks in indices has always been important. In recent years, partly due to fund inflows into ETFs and passive investment tools, inclusion in indices has become even more important."