The Nasdaq 100 is set for a major reshuffle on December 23, 2024, with new companies entering and others exiting the index. Palantir Technologies, MicroStrategy, and Axon Enterprise will join, while Super Micro Computer, Moderna, and Illumina are being removed.
Super Micro drops following removal
Super Micro Computer’s stock fell nearly 7% after news of its removal from the Nasdaq 100. Being dropped from a major index often triggers selling pressure, as funds that track the Nasdaq 100 adjust their holdings. Additionally, concerns over the company’s delayed financial filings and potential capital-raising plans have added to investor unease.
MicroStrategy rises on inclusion
On the other hand, MicroStrategy shares gained around 4% after being announced as a new addition to the Nasdaq 100. Known for its significant Bitcoin holdings, MicroStrategy’s stock has been moving in line with Bitcoin’s recent gains. Inclusion in the index is seen as a positive signal that could drive institutional interest and improve liquidity.
Why it matters for investors
Changes to major indices like the Nasdaq 100 can create notable shifts in stock performance. Companies added to the index often see increased demand and investor confidence, while those removed may face short-term selling pressure.
As these adjustments take effect, market participants will be watching closely to see how these stocks respond.