Nike Dropped From S&P 100 as Tech Firms Take Over

Nike will exit the S&P 100 index on September 21, concluding an 18-year tenure. The company remains part of the broader S&P 500 but no longer qualifies among the 100 largest US firms. Other companies leaving the index on the same date include Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive.

Four technology firms will replace the departing companies: Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk. These additions shift the index composition toward cybersecurity, cloud hardware, and semiconductor sectors. Funds tracking the index are now required to adjust their holdings by selling the outgoing stocks and purchasing the new entrants.

The removal follows a significant decline in Nike's market performance. The company's market capitalization dropped from approximately $264 billion at the end of 2021 to about $57 billion. Its stock price recently reached $38.40, marking its lowest level in 12 years and a 76% decline over the past five years.

The index rebalancing also includes the addition of Bloom Energy, Illumina, and Everpure to the S&P 500. While Nike continues to maintain higher sales volume compared to the incoming tech companies, market focus has shifted toward growth-oriented technology sectors, driven by capital spending in areas like AI data centers and flash memory.