Bankinter: The Nasdaq will start trading this Monday with the new adjustment of the weights of its components. The Nasdaq can perform a special rebalancing when the aggregate weighting of the stocks in its index with an individual weighting of more than 4.5% exceeds 48% of the index total. The rebalancing aims to reduce this weighting to a maximum of 40%. The final weightings have not yet been published, although Nasdaq says in a statement that Microsoft, Apple, Nvidia, Amazon and Tesla will have their index weights reduced and the excess aggregate weight will be redistributed among the remaining names in the indices. Names expected to be added include significantly Starbucks, Mondelez, Booking Holdings and Broadcom, among others.
Assessment: The changes in weightings could have a negative impact in the short term on the share prices of the large companies affected (and a positive impact on those that increase their weight) due to the adjustment of the weights in the index funds and portfolios. In the medium term, once these adjustments have taken place, there should be no effect on markets.