Nike Falls From S&P 100 as Four Tech Firms Move Up

S&P Dow Jones Indices confirmed on its quarterly rebalance that Nike will leave the S&P 100 on Sept. 21. Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk will take the open positions. Nike will remain a member of the broader S&P 500. Honeywell Aerospace, Simon Property Group and Colgate-Palmolive are also scheduled to exit the S&P 100 on the same date.

The S&P 100 is composed of the largest and most established companies within the S&P 500, and its membership changes when market values shift. The four replacements were promoted from the wider S&P 500 into the top-100 index.

Arista produces high-performance network switches used in AI and cloud data centers. SanDisk, spun out of Western Digital last year, manufactures flash memory used in enterprise storage systems. Palo Alto Networks is a cybersecurity company whose chief executive has argued that rising AI investment will require new approaches to securing AI systems. Dell supplies servers and other enterprise hardware for cloud and data center deployments. The additions increase the index’s exposure to chips, cloud hardware and cybersecurity companies.

Funds and exchange-traded funds that track the S&P 100 will need to buy the incoming stocks and sell those leaving the index, a process that can prompt higher trading volume in the affected names. SanDisk shares rose on the announcement. Separately, Bloom Energy, Illumina and Everpure are set to join the S&P 500 the same morning the S&P 100 changes take effect.

Nike’s exit reflects a sustained drop in its market value. The stock recently closed at $38.40, its weakest level in 12 years. It has lost about half its value over the past year and roughly three-quarters over five years. Market capitalization has fallen to about $57 billion from roughly $264 billion at the end of 2021, a decline of about $207 billion; the company has erased more than $230 billion since its all-time high. Over the same five-year span, the S&P 100 rose about 83 percent.

The reconstitution results in a larger representation of technology and capital-intensive infrastructure firms in the S&P 100, while several long-standing consumer and industrial companies moved down in the ranking of the largest U.S. companies.