Nasdaq 100 Rebalance: What Investors Need to Know

The Nasdaq 100 index underwent a special rebalance on Monday, July 24th, 2023. This rebalance was designed to reduce the dominance of mega-cap technology stocks in the index and boost the presence of smaller companies.

As a result of the rebalance, the weight of Microsoft, Apple, Nvidia, Amazon, and Tesla was reduced, while the weight of other companies, such as Broadcom and Intuit, was increased.

The rebalance could lead to increased volatility in the Nasdaq 100 in the near term, as passive investors adjust their portfolios to reflect the changes.

In addition to the Nasdaq 100 rebalance, there are a number of other market catalysts that investors will be watching this week.

The Federal Open Market Committee (FOMC) is scheduled to meet on Wednesday, July 26th, 2023. The FOMC is expected to raise interest rates by 0.75% at this meeting, which would be the largest rate hike since 1994.

The Consumer Price Index (CPI) is scheduled to be released on Wednesday, July 26th, 2023. The CPI is expected to show that inflation continued to rise in June.

This week is also the busiest week of earnings season, with over 100 companies reporting results. Earnings are expected to be mixed, with some companies reporting strong results and others reporting weak results.

What are your thoughts on the Nasdaq 100 rebalance and the upcoming market catalysts? Let me know in the comments below.