Shares of Big Tech sold off Monday ahead of the upcoming Nasdaq 100 rebalancing. The rebalancing, which will take place on July 18, will see Apple, Microsoft, and Amazon removed from the index and replaced by Tesla, Alphabet, and Meta.
The sell-off in Big Tech shares was likely due to concerns about the impact of the rebalancing on the companies’ valuations. The Nasdaq 100 is a price-weighted index, which means that the prices of the stocks in the index have a direct impact on its value. As a result, the removal of Apple, Microsoft, and Amazon from the index is likely to lead to a decline in the index’s value.
The sell-off in Big Tech shares also comes as investors are becoming more concerned about the broader market. The S&P 500 is down about 20% year-to-date, and there are concerns that the market could be headed for a recession.
The rebalancing of the Nasdaq 100 is just one of the factors that could weigh on Big Tech shares in the coming months. Investors will be watching closely to see how the companies’ valuations are affected by the rebalancing, and they will also be watching for signs of a broader market sell-off.