Nasdaq ‘Corrects’ Apple’s Influence

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What's good for Nasdaq is not good for Apple shares, at least in the short term.

The tech-heavy index is reducing Apple's influence from 20 percent to 12 percent, according to the Wall Street Journal.

Apple's a victim of its own success, as their phenomenal growth over the past years has given it a disproportionate influence on the Nasdaq-100.

This protects the index from fluctuations or disruptions within just one company, shielding the other 99 companies from, for instance, product pipeline issues.

The rebalancing will have an immediate impact on mutual fund management, as analysts retool their holdings to reflect the rightsizing. Some market volatility is expected, but not over a long period.

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