The influence of three companies ranked among the top globally in the NASDAQ 100 Index has declined, following a surge in the Technology Sector in 2024 that led to unprecedented levels of these Stocks.

Compiled data shows that in the NASDAQ 100's rebalancing, the weights of three major Technology Stocks—Tesla, Meta, and Broadcom—have decreased, with Tesla's weight dropping from 4.9% last Friday to 3.9%, Broadcom's from 6.3% to 4.4%, and Meta's from 4.9% to 3.3%.

At the same time, the weights of four other technology giants—Apple, NVIDIA, Microsoft, and Google's parent company Alphabet—in the NASDAQ 100 have all increased. Among them, Apple's weight rose from 9.2% to 9.8%, and NVIDIA's from 7.9% to 8.4%.

Among the seven stocks mentioned above with weight changes, excluding Broadcom, six belong to the well-known Meg Seven—the technology giants known as the "Seven Sisters," which include Microsoft, Apple, NVIDIA, Alphabet, Amazon, Meta, and Tesla.

According to market data from Dow Jones, as of the 11th of this month, the combined market cap of the "Seven Sisters" has surpassed 18 trillion dollars for the first time in history, with a combined weight exceeding 30% among S&P 500 constituents. The AI boom and expectations of interest rate cuts by the Federal Reserve are the main drivers behind the sharp increase in these technology stocks this year.

The weight of the NASDAQ 100 Index generally depends on the relative market cap of its constituent stocks. However, it is also influenced by several clauses; if a few constituent stocks become too large, the clauses restricting their influence will come into effect. For example, when the total weight of all constituent stocks exceeding 4.5% of the index reaches or exceeds 48%, an adjustment clause will be triggered.

This is the second adjustment by regulatory agencies in the past year regarding the proportions of the largest components in this Index, which generally overlap with the 'Seven Giants of Technology.' Their unstoppable appreciation has been a focal point for the market. In recent years, given that the rise of the US Stock Market has largely been driven by AI, rules aimed at preventing a few companies from having too great an impact on the index have been frequently applied.